Which of the following is the best description of the effects of an increase in the supply of bread?
a. Consumers will pay more for bread.
b. Bread prices will fall, and bread sales will rise.
c. A permanent surplus of bread will remain on the market.
d. Bakers will have higher marginal costs.
B
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Which of the following will cause the long-run aggregate supply curve to shift? I. Changes in technology II. Changes in government spending III. Changes in the money supply
A) I only B) II only C) I, II, and III D) only I and II
Free trade leads to an overall improvement in the standard of living in a country because everything is produced at the lowest possible cost
a. True b. False Indicate whether the statement is true or false
If a country engaged in free trade has an unlimited quantity of imports of a good available at a fixed price, the supply curve for that good is
a. upward sloping. b. perfectly inelastic. c. downward sloping. d. perfectly elastic.
The major protection against a sudden mass attempt to withdraw cash from banks is the