Refer to the accompanying figure. An increase in demand is represented by a shift from:
A. curve A to curve B.
B. curve D to curve C.
C. curve C to curve D.
D. curve B to curve A.
Answer: C
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Which of the following statements is true?
A) If a bank lends a sum of $600 to a firm, the sum is a part of the bank's liability. B) If a bank lends a sum of $200 to a household, the sum is a part of the bank's liability. C) If a firm deposits a sum of $500 in a bank, the sum is a part of the bank's assets. D) If a firm deposits a sum of $500 in a bank, the sum is a part of the bank's liability.
Perfect competition ________ a fair outcome ________
A) achieves; because both the fair rules and fair results conditions are met B) achieves; because total surplus is maximized C) does not achieve; because entrepreneurs only earn a normal profit D) does not achieve; because firms must be price takers E) may achieve; if average total costs are minimized
Income is distributed very unequally in ________ and very equally in ________
A) Finland and South Africa; Brazil and Sweden B) Brazil and South Africa; Finland and Sweden C) Finland and Sweden; Brazil and South Africa D) Brazil and Sweden; Finland and South Africa
Two individuals engage in the same two productive activities. In which of the following circumstances would neither individual have a comparative advantage in either activity?
a. One individual's production possibilities frontier is steeper than the other individual's production possibilities frontier. b. One individual is faster at both activities than the other individual. c. One individual's opportunity costs are the same as the other individual's opportunity costs. d. None of the above is correct; one of the two individuals always will have a comparative advantage in at least one of the two activities.