Use the information in Scenario 4.2. Suppose that the price of artichokes is increased slightly from $10. The total expenditure by consumers on artichokes will ________ and the number of artichokes sold will ________
A) rise, rise
B) rise, fall
C) fall, rise
D) fall, fall
B
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The Ricardo-Barro effect argues that the crowding-out effect
A) is the result of the government budget deficit and higher interest rates. B) will occur, because the private saving supply will change to offset any change in the government budget deficit. C) is stronger when the government runs a budget surplus than when it runs a budget deficit. D) is the result of a government budget surplus and higher interest rates. E) will not occur, because the private saving supply will change to offset any change in the government budget deficit.
An advance in technology increases the productivity of labor. As a result, the nation's production function shifts ________ and the ________ labor curve shifts rightward
A) upward; demand for B) downward; demand for C) upward; supply of D) downward; supply of
A traditional economy is based on
a. government regulation. b. self-sufficiency. c. barter. d. both self-sufficiency and barter.
In an economy without government or a foreign sector the equilibrium level of output occurs when
A) actual saving equals actual investment. B) actual saving equals desired investment. C) desired saving equals desired investment. D) desired saving equals actual investment.