Refer to the above graph. Which factor will shift AS1 to AS3?
A. An increase in input prices.
B. A decrease in business taxes.
C. A decrease in household indebtedness.
D. An increase in productivity.
Answer: A
You might also like to view...
Refer to the scenario above. If the curator values the painting at $45,000, which of the following problems is likely to arise?
A) Adverse selection B) Free-rider problem C) The paradox of thrift D) The tragedy of the commons
Transaction costs are likely to be ________ when property rights are ________ clearly defined
A) lower ; less B) higher; more C) lower; more D) Trick question: there is no causal relationship between transaction costs and property rights.
The currency deposit ratio, c, is 0.10. The reserve requirement, rr, is 0.08. The excess reserve ratio, e, is 0.05. What is the size of the money multiplier?
A) 4.70 B) 4.78 C) 4.75 D) 4.00
Which of the following is false?
a. Accepting a reduction in current income to acquire education and training can increase future earning ability, which can raise the standard of living. b. Improvements in literacy stimulate economic growth by reducing barriers to the flow of information and raising labor productivity. c. One problem of providing enough education in poorer countries is that since children in developing countries are an important part of the labor force at a young age, there is a higher opportunity cost of education in terms of foregone contribution to family income. d. Investment alone guarantees economic growth per capita.