Normally an increase in the supply of a good will cause
a. a shift of consumer preferences in favor of that good.
b. consumers to use more of that good and less of others.
c. a shift of consumer preferences away from that good.
d. consumers to use less of that good and more of others.
b
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For which pairs of goods is the cross-price elasticity most likely to be negative?
a. peanut butter and jelly b. celery and coffee c. pens and pencils d. iPods and iPads
Other things the same, continued increases in the money supply lead to
a. continued increases in the price level and real GDP. b. continued increases in the price level but not continued increases in real GDP. c. continued increases in real GDP but not continued increases in the price level. d. a one-time permanent increase in both prices and real GDP.
Using the production function Real GDP = T (L, K), define the term production function and describe what each of the variables (T, L, and K) represents. When graphed with Real GDP on the vertical axis and labor on the horizontal axis, which variable(s) can shift the production function and which variable(s) can cause a movement along the production function?
Frictional unemployment is
A. a result of business recessions that occur when aggregate demand is insufficient to create full employment. B. a result of a poor match of worker's abilities and skills with current requirements of employers. C. a result of the seasonal pattern of work in specific industries. D. related to job search difficulties for potential workers.