Figure 4.4 illustrates the supply of tacos. If the government offered a subsidy to Mexican restaurants for each taco they produce, this would most likely cause a movement from:
A. point a to point c.
B. point c to point b.
C. S2 to S1.
D. S0 to S1.
Answer: D
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A(n) ____ is characterized by a relatively small number of firms producing a product
a. monopoly b. syndicate c. cooperative d. oligopoly e. none of the above
International equilibrium occurs if the quantity of imports demanded by one country is equal to the quantity of exports supplied by the other country
a. True b. False Indicate whether the statement is true or false
Farmer Ted owned a worn-out piece of farmland for growing cotton, which he had been unable to rent for years. Suddenly he was getting offers from cotton farmers to lease his land. What is the most likely explanation of this?
a. The price of cotton went down. b. The physical productivity of the land went up. c. Taxes on the land went up. d. The price of cotton went up.
According to the interest-rate effect, aggregate demand slopes downward (negatively) because
A. lower prices increase money holdings, decrease lending, interest rates rise, and investment spending falls. B. lower prices increase the value of money holdings and consumer spending increases. C. lower prices decrease the value of money holdings and consumer spending decreases. D. lower prices reduce money holdings, increase lending, interest rates fall, and investment spending increases.