Laura Kaid owns a business and is willing to invest in capital until, at the margin, her investment yields a cash stream with a present value less than the marginal cost of the investment
a. True
b. False
B
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If the demand and supply curves for a commodity shift to the right and the shift in demand is greater than the shift in supply, then in comparison to the initial equilibrium, the new equilibrium will be characterized by:
A) a lower price and quantity. B) a higher price and quantity. C) the same price and quantity. D) a higher price and a lower quantity.
The experience of the Volcker disinflation of the early 1980s
a. generally increased estimates of the sacrifice ratio. b. generally decreased estimates of the sacrifice ratio. c. clearly refuted the predictions of the proponents of rational expectations. d. clearly refuted the predictions of the opponents of rational expectations.
In Figure 20.2, if Aggregate Demand does not change, the increase in Real GDP will be accompanied by 
A. lower real wages. B. no change in the price level. C. a lower price level. D. a higher price level.
Relating to the Economics in Practice on page 253: Ethanol subsidies have increased the supply of corn, and ethanol is a fuel produced from corn. As a result, ________ farm land has increased. Further, supply of ________ has decreased.
A. supply of; corn B. demand for; other grains C. supply of; other grains D. demand for; corn