Assume an economy experiences an increase in productivity that occurs as a result of the more efficient use of existing technologies. Given this information, we would expect which of the following to occur?
A) aggregate demand would not change
B) aggregate demand would shift to the right
C) aggregate demand would shift to the left
D) both the aggregate demand and aggregate supply curves would shift to the left
C
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Refer to the table below. Based on their comparative advantages, Pat should specialize in ________, and Corey should specialize in ________. Pizzas MadePer HourPizzasDeliveredPer HourCorey126Pat1015
A. both making pizza and delivering pizza; neither making pizza nor delivering pizza B. making pizza; delivering pizza C. neither making pizza nor delivering pizza; both making pizza and delivering pizza D. delivering pizza; making pizza
If banks choose to hold excess reserves
A. Lending decreases, and the money supply decreases. B. Lending increases, and the money supply increases. C. Lending decreases, and the money supply increases. D. None of these.
Which of the following is not a basic assumption underlying the theory of consumer behavior?
A) Consumers prefer more to less. B) Consumer preferences depend on the amounts of goods they consume as well as the amounts being consumed by other consumers. C) Goods are continuously divisible, that is, consumers can always purchase one more or one less unit of a good. D) Consumers have well-behaved preferences, that is, preference orderings are complete.
The introduction of a subsidy in a perfectly competitive marketplace that is originally in equilibrium will raise total surplus.
Answer the following statement true (T) or false (F)