Which of the following is the reason supply curves typically slope upward?
a. Opportunity cost of production increases as quantity supplied increases.
b. Supply increases as opportunity cost decreases.
c. Price increases as supply decreases.
d. Quantity supplied is unrelated to price.
e. The income and substitution effects of a price change.
A
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Managers of profit centers are usually given a lot of discretion because
a. They always do an excellent job b. They rarely do a good job c. The company can never judge their performance d. It is relatively easy to tie management pay to division performance
Under a gold standard, a balance of payments deficit automatically
a. raised interest rates. b. decreased exports. c. increased domestic prices. d. increased imports.
Which of the following attributes of trade explain why it is important for economic prosperity?
a. Trade moves goods from people who value them less to people who value them more. b. Trade makes it possible to produce a larger output as a result of lower per unit costs that often accompany large-scale production. c. Trade makes it possible to produce a larger output as a result of gains from division of labor and specialization. d. All of the above.
If the price elasticity of supply is 0.5, a 10 percent increase in price will cause a:
A. 5 percent decrease in quantity supplied. B. 20 percent increase in quantity supplied. C. 20 percent decrease in quantity supplied. D. 5 percent increase in quantity supplied.