As the price of flour (an input in the production of cookies) increases, firms that produce cookies will:
A. increase the supply of cookies.
B. increase the quantity of cookies supplied.
C. decrease the quantity of cookies supplied.
D. decrease the supply of cookies.
Answer: D
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Increases in government expenditures and large budget deficits are projected for 2014-2020 . If the economic recovery is weak and growth is sluggish during this decade, this will be
a. supportive of the Keynesian view, but inconsistent with the crowding-out, new classical, and supply-side theories. b. inconsistent with the Keynesian view, but supportive of the crowding-out, new classical, and supply-side theories. c. inconsistent with both Keynesian and non-Keynesian theories. d. supportive of both Keynesian and non-Keynesian theories.
According to the equation of exchange, if real output and the money supply stay the same and the price level increases:
A. nominal GDP remains constant. B. the velocity of money has to increase. C. the velocity of money has to decrease. D. the real GDP had to rise.
This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.If the two music stores are faced with the game in the figure, we can see that:
A. neither store has a dominant strategy. B. MiiTunes has a dominant strategy, but The Rock Shop does not. C. both stores have a dominant strategy. D. The Rock Shop has a dominant strategy, but MiiTunes does not.
The largest source of federal revenue is the corporate income tax.
Answer the following statement true (T) or false (F)