As price is lowered from a point higher than the equilibrium price, it will bring about
a. an increase in demand.
b. a decrease in supply.
c. an increase in quantity demanded.
d. an increase in supply.
c. an increase in quantity demanded.
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The figure above shows Tanya's consumption possibilities. Which of the following combinations of goods is not affordable?
A) 8 movie tickets and 3 restaurant meals. B) 12 movie tickets and 2 restaurant meals. C) 10 movie tickets and 3 restaurant meals. D) 6 movie tickets and 3 restaurant meals.
The division of labor benefits society only if
a. a system of exchange exists. b. society uses all of its resources efficiently. c. society has no specialized resources. d. labor resources are not scarce.
In the simple circular-flow diagram, households
a. are the only decision makers. b. own the factors of production. c. are buyers of inputs. d. consume only some of the goods and services that firms produce.
The nominal exchange rate is the
a. nominal interest rate in one country divided by the nominal interest rate in the other country. b. the ratio of a foreign country's interest rate to the domestic interest rate. c. rate at which a person can trade the currency of one country for another. d. the real exchange rate minus the inflation rate.