Refer to the above figure. How do you describe what is happening as the economy moves from point A to point B?
A) The economy has acquired new resources that are well suited for producing wool.
B) Land that was once used to grow wheat is now being used to graze sheep.
C) The economy is producing more bread by choosing to produce less wool.
D) The technology for growing wheat has improved.
B
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If Big Scoops, a local ice cream parlor, purchases milk from a grocery store to make their ice cream, this is an example of ________.
A) outsourcing B) forward integration C) using a spot market D) backward integration
If the world price of steel is greater than the U.S. "no-trade" domestic equilibrium price of steel, the United States:
a. will not produce steel. b. will demand steel from the rest of the world. c. will supply steel to the rest of the world. d. will not trade steel. e. will have a shortage of steel in the domestic market.
In 2008-2009, which of the following weakened the demand stimulus effects of expansionary fiscal policy?
a. the unwillingness of the federal government to run budget deficits b. the heavy indebtedness of American households c. a high level of household spending on big-ticket items such as houses and cars, which do not promote economic growth d. the continuation of the high saving rates on the part of Americans
A rightward shift of a supply curve is called a(n)
a. increase in supply. b. decrease in supply. c. decrease in quantity supplied. d. increase in quantity supplied.