If the same dairy can produce either whole milk or skim milk, an increase in the profitability of whole milk results in a(n)
a. decrease in the quantity supplied of whole milk
b. increase in the supply of whole milk
c. decrease in the supply of skim milk
d. increase in the supply of skim milk
e. decrease in the quantity supplied of skim milk
C
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Which of the following explains why the demand for money curve reveals an inverse relationship between interest rates and the quantity of money demanded?
a. As interest rates rise, the opportunity cost of holding money rises, and people respond by converting cash or checking account balances into interest-bearing financial investments. b. As interest rates fall, the opportunity cost of holding money rises, and people respond by converting cash or checking account balances into interest-bearing financial investments. c. As interest rates rise, the opportunity cost of holding money falls, and people respond by converting their interest-bearing financial assets into cask or checking account balances. d. As interest rates rise, people find it advantageous to borrow money, which increases the quantity of money demanded.
If there is an excess supply of a good, the problem of scarcity does not apply to that good.
a. true b. false
Which one of the following statements is NOT correct?
A. The natural rate of unemployment is estimated to be between 5 percent and 6.5 percent in the U.S. B. The term "full employment" means that 100 percent of the labor force is employed. C. The line between frictional and structural unemployment is sometimes hard to draw. D. Unemployment can occur even when an economy is growing.
The biggest problem with the ________ was that it was unclear what specific acts were to be considered "restraints of trade."
A. Sherman Antitrust Act B. The Humphrey-Hawkins Act C. The Clayton Act D. The FTC Act