If bagels and croissants are substitute goods, which of the following is likely to occur if the price of bagels has decreased?
A) The demand curve for bagels shifts to the right.
B) A leftward movement along the bagel demand curve.
C) The demand curve for croissants shifts to the right.
D) The demand curve for croissants shifts to the left.
Answer: D
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The Value Added Tax (VAT) is
A. not often used in the United States. B. a percentage tax. C. added at each stage to production. D. all of these answer options are correct.
Points on the production possibilities frontier have the property that they
A) are inherently unattainable. B) show the maximum amount of leisure that can be consumed for given amounts of goods consumed. C) show the maximum amount of goods that can be consumed for given amounts of government spending. D) show the maximum amount of leisure that can be consumed for given amounts of hours worked.
How does asymmetric information affect market outcomes?
Assume monetary equilibrium exists—that is, the desired and the actual supply of money are equal—when nominal GDP equals $480 billion and the money supply is $160 billion. According to a strict monetarist view, an increase in the money supply of $10
billion will increase the nominal GDP by: A. $30 billion. B. $25 billion. C. $20 billion. D. $10 billion.