What happens when a supply curve shifts right?
What will be an ideal response?
When a supply curve shifts right (when supply increases), equilibrium price decreases, and equilibrium quantity increases. An example of this would be the increase in the supply of cell phone service. With the increase in supply, there is a new, increased equilibrium quantity, and a lower equilibrium price. More cell phone service providers mean more competition and increased quantity demanded, but lower prices.
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The benefits of net capital inflows to a country include all of the following except:
A. interest and dividend payments owed to foreign investors. B. a potentially higher growth rate. C. a higher rate of investment in new capital. D. a larger pool of total savings.
Under monopolistic competition, the number of firms increases as fixed entry costs fall and as demand for the type of good produced in the market increases.
Answer the following statement true (T) or false (F)
How are the insurance premiums determined for deposit insurance?
a. The insurance premium is based on the bank’s level of deposits and then adjusted according to the riskiness of a bank’s financial situation. b. The insurance premium is based on the bank’s level of riskiness and then adjusted according to the bank’s level of deposits. c. The insurance premium is based on the bank’s level of deposits and then adjusted according to the riskiness of the overall U.S. banking system's financial situation. d. The insurance premium is based on the bank’s level of riskiness and then adjusted according to the level of deposits of the overall U.S. banking system.
Community-wide poverty:
A. only creates problems in less wealthy countries. B. creates problems beyond those faced by poor individuals living in wealthier communities. C. is nonexistent in the developed world. D. None of these is true.