The price of a good will fall when:
A. there is a shortage of the good.
B. there is a surplus of the good.
C. demand for the good increases.
D. the supply of the good decreases.
Answer: B
You might also like to view...
The self-interest model of government:
a. suggests that government officials are selfish. b. explains why there are limits on government taxation and spending. c. shows who some government projects take place even if the cost exceeds the benefits. d. All of the above.
In an open economy, the government purchases multiplier will be smaller the
A) larger the marginal propensity to consume. B) smaller the marginal propensity to import. C) larger the tax rate. D) All of the above are correct.
An option that can only be exercised at maturity is called
A) a swap. B) a stock option. C) an European option. D) an American option.
The disadvantages of proprietorships include
A) limited liability for the owner. B) double taxation of business profits. C) the fact that the proprietorship can continue even after the owner dies. D) the fact that the proprietor is solely responsible for all the firm's debts.