If there is a decline in the price of milk, an input in the production of ice cream, then there will be a(n)
A) decrease in the supply of ice cream and a leftward shift of the supply curve.
B) decrease in the quantity of ice cream supplied and a movement up along the supply curve.
C) increase in the supply of ice cream and a rightward shift of the supply curve.
D) increase in the quantity of ice cream supplied and a movement down along the supply curve.
Answer: C
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Microeconomics includes the study of
A) how countries decide to fund their budget deficits. B) the choices that individuals and businesses make. C) how a nation promotes economic growth. D) the effect on the national economy of the choices that individuals make. E) the overall amount of production within the economy.
For an economy, the greater the value of the Gini co-efficient, _____
a. the greater will be the GDP. b. the greater will be the income inequality c. the greater will be the revenue of the government from direct taxes d. the greater will be the equality in the distribution of income and wealth e. the lesser will be the expenditure on the part of the government
Monetary policy affects which of the following variables in the long run?
A) the level of output B) the rate of unemployment C) the rate of inflation D) the real interest rate E) all of the above
Refer to Table 2-2. Assume Nadia's Neckware only produces ascots and bowties. A combination of 8 ascots and 18 bowties would appear
A) along Nadia's production possibilities frontier. B) inside Nadia's production possibilities frontier. C) outside Nadia's production possibilities frontier. D) at the horizontal intercept of Nadia's production possibilities frontier.