Suppose that the price of macaroni drops. Quantity supplied will ________ and producer surplus will ________.
A. increase; increase
B. increase; decrease
C. decrease; increase
D. decrease; decrease
Answer: D
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If the price of goods X and Y change proportionally, then which of the following is true?
a. The budget line will not change because the prices have changed proportionally. b. It is not clear what happens to the budget line because too many factors have changed. c. It will appear as if the budget line has shifted even though income has not changed. d. It will appear as if the budget line pivoted and the slope will change because prices changed.
A bank is insolvent when:
A) its total assets exceed its total liabilities. B) its stockholders' equity exceeds its total assets. C) its stockholders' equity exceeds its total liabilities. D) its total liabilities exceed its total assets.
Which of the following is true about the short-run and long-run supply curves?
a. The long-run supply curve is steeper than the short-run supply curve. b. The long-run supply curve is vertical while the short-run supply curve is flatter. c. The long-run supply curve is horizontal while the short-run supply curve is vertical. d. The long-run supply curve is less steep than the short-run supply curve. e. The long-run and short-run supply curves have the same slope.
The U.N. has established a Millennium Poverty Goal of cutting in half by 2015 the number of people in extreme global poverty.
Answer the following statement true (T) or false (F)