Figure 4.4 illustrates the supply of tacos. A decrease in the supply of tacos is represented by a movement from
A) point a to point b. B) point c to point b. C) S0 to S1. D) S2 to S1.
D
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When the price of audio books, a normal good, falls, causing your purchasing power to rise, you buy more of them due to
A) the deadweight loss effect. B) the elasticity effect. C) the income effect. D) the substitution effect.
A monetarists would expect an increase in government spending to have a strong effect on output only if the spending increase was
a. financed by an increase in the money supply. b. financed by a sale of bonds. c. financed by an increase in taxes. d. accompanied by a higher in the deficit.
By 2012, the dollar value of the debt:
A. past 100 percent of GDP. B. the lowest in the U.S. history. C. was reduced to $500 billion. D. back down to 40 percent of GDP.
The cost of capital and the cost of debt should be identical when economic profits are positive
Indicate whether the statement is true or false