If the price of a commodity increases as the result of increased demand, you would expect the:
A) supply to increase.
B) quantity supplied to increase.
C) quantity supplied to decrease.
D) supply curve to shift to the right.
Ans: B) quantity supplied to increase.
You might also like to view...
To reduce the principal-agent problem
A) boards-of-directors can tie the salaries of top management to the profitability of the firm. B) managers can inflate profits on financial statements. C) managers can take on more risk than they disclose to investors. D) managers can hide liabilities by not disclosing them on financial statements.
One aspect of bank accounting is that many liabilities of banks are
A. assets of other persons and businesses in the economy. B. also liabilities of other persons and businesses in the economy. C. not matched by liabilities of most other banks. D. not actually owed to any other person or business in the economy.
The moral hazard in team production arises from
a. poorly designed team membership b. lack of proper assignment of individual tasks c. disorganization in groups d. a conflict between tactically best interest and one's duty e. insufficient experience
What type of economic analysis is limited to testable, verifiable statements?
a. Macroeconomics. b. Entrepreneurial economics. c. Positive economics. d. Normative economics.