When supply decreases and the supply curve shifts to the left, equilibrium price ________ and equilibrium quantity ________.
A. increases; increases
B. increases; decreases
C. decreases; increases
D. decreases; decreases
Answer: B
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Refer to Table 14-9. In order to maximize profit, the firm will produce a level of output where marginal cost is equal to
a. $6. b. $7. c. $8. d. $9.
Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 3.3. Nigel's opportunity cost of producing one bandana is
A) 1/4 of a hair pin. B) 2/5 of a hair pin. C) 2.5 hair pins. D) 4 hair pins.
The variable measured on the y-axis increases whenever the variable measured on the x-axis increases. As a result, the relationship between the variables will
A) be negatively sloped. B) have a slope of zero. C) be a vertical line. D) be none of the above.
If the government decreases the income tax rate, they assume it will affect which component of GDP?
A. C B. NX C. G D. A change to the income tax rate will not affect any of these components.