According to the model of supply and demand, an increase in the price of milk will cause a
A. leftward shift in the supply for milk.
B. rightward shift in the supply for cheese.
C. rightward shift in the demand for cheese.
D. leftward shift in the supply for cheese.
Answer: D
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Resource use is allocatively efficient
A) when marginal benefit equals marginal cost. B) whenever marginal benefit exceeds marginal cost. C) whenever marginal cost exceeds marginal benefit. D) when the maximum possible quantity is being produced.
Which of the following does NOT contribute to the choice of a policy of hyperinflation?
A) war B) increased price of energy paid to foreigners C) price of export commodities increase D) diminished ability to collect taxes
An advantage of the partnership form of business organization is
A) its limited liability. B) its limited access to capital, thus reducing the possible size of debt. C) the ability of its owners to specialize. D) that it is difficult to start up, because a lot of thought has to go into the establishment of the firm.
If coffee and cream are complements, an increase in the price of coffee will cause
a. the demand for cream to increase. b. the demand for cream to fall. c. the demand for coffee to fall. d. no change in the demand for cream; only quantity demanded would be affected.