Suppose that we are currently at point b in Figure 14.1. An increase in government spending will result in a:
A. shift in the AD curve from AD1 to AD2.
B. shift in the AD curve from AD1 to AD0.
C. movement from point b to point a.
D. movement from point b to point c.
Answer: A
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Producer surplus is
a. represented on a graph by the area below the demand curve and above the supply curve. b. the amount a seller is paid minus the cost of production. c. also referred to as excess supply. d. All of the above are correct.
Inventions like gunpowder and the wheelbarrow were created by the Chinese hundreds of years ago. The fact that such items were not put to productive use was caused primarily by a lack of ____.
A. available financial capital B. incentives for entrepreneurship C. an adequate price system D. ingenuity
Other things equal, the gravity equation predicts that the United States will have more trade with __________ than with _________.
a. Bangladesh; Japan b. Russia; Japan c. Canada; Bangladesh d. Russia; Bangladesh
Refer to the above table. Suppose the price of a hamburger is $2, the price of a movie is $5, and the income of the consumer is $29. What will the consumer's total utility equal at an optimum?
A. 1118 B. 70 C. 1060 D. 1025