How is the market supply curve found? In what ways is the process similar to the way the market demand curve is determined? In what ways are they different?
What will be an ideal response?
The market supply curve is obtained by horizontally adding individual supply curves. The quantity supplied by each firm for a given price is added up to get the quantity supplied by the market. The process is identical to that for finding the market demand curve. The only difference is that the market demand curve slopes down and the market supply curve slopes up.
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If Mexico imports more than it exports to Canada, this contributes to
a. a favorable balance of trade for Mexico b. an unfavorable balance of trade for Canada c. Canadians having to borrow pesos from the foreign exchange market d. Mexicans buying assets in Canada e. a favorable balance of trade for Canada
The quarterly increase in an employee's salary depends on the rating of his work by his employer and several other factors as shown in the model below:
Increase in salary= 
0+
0?Rating + other factors. The variable ‘Rating' is a(n) _____.
A. dependent variable B. ordinal variable C. continuous variable D. Poisson variable
The Federal Reserve is powerful because it can influence _______ through its control over _______.
A. the money supply; aggregate demand B. interest rates; aggregate supply C. aggregate demand; the money supply D. aggregate supply; interest rates
If potential output is unknown:
A. factor prices are more likely to change. B. we can still determine how the short-run aggregate supply curve will shift. C. we cannot determine precisely how the short-run aggregate supply curve will shift. D. factor prices are less likely to change.