Explain the differences between a change in supply and a change in quantity supplied
What will be an ideal response?
A change in supply refers to a shift of the supply curve, which occurs when one of the variables other than the price of the product changes. A change in quantity supplied refers to a movement along the supply curve, which occurs when the price of the product changes.
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If real GDP per person in a country equals $20,000 and 40 percent of the population is employed, then average labor productivity equals:
A. $8,000. B. $20,000. C. $50,000. D. $40,000.
The Fed affects aggregate demand through monetary policy by changing
A) tax rates on only interest income and so influencing disposable income. B) government expenditure and so influencing the budget balance. C) the quantity of reserves and determining government expenditure. D) tax rates and influencing disposable income. E) the federal funds rate and the quantity of reserves.
In the calm before the storm of the early 1990s recession, the economy was fueled by many factors including debt-financed purchases by some firms of all the stock or assets of other firms. These purchases were known as
a. hostile takeovers b. junk bonds c. leveraged buyouts d. stock swaps e. derivatives
The economic principle that states that individuals or nations can gain by specializing in the production of goods that they produce cheaply and exchanging for other desired goods that they could only produce at a higher cost is
a. the law of absolute advantage. b. the law of comparative advantage. c. the law of production possibilities. d. the exchange maximum principle.