If the United Auto Workers union can obtain a substantial wage increase for auto workers, there will be
a. a decrease in the supply of automobiles, which is a shift to the right of the supply curve.
b. a decrease in the supply of automobiles, which is a shift to the left of the supply curve.
c. an increase in the supply of automobiles, which is a shift to the right of the supply curve.
d. an increase in the supply of automobiles, which is a shift to the left of the supply curve.
B
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Rebecca, a citizen of U.S., imported a watch from Switzerland. This transaction leads to a(n) ________
A) increase in the GNP of U.S. B) increase in the GDP of Switzerland C) decrease in the GDP of Switzerland D) increase in the GDP of U.S.
When positive externalities are involved, the market is said to
A. fail, because it underproduces the good connected with the positive externality. B. fail, because it overproduces the good connected with the positive externality. C. succeed, because it produces the socially optimal quantity of the good connected with the positive externality. D. be "in optimum," because the equilibrium fully adjusts for the positive externality.
The laws of supply and demand force prices to an equilibrium
a. True b. False Indicate whether the statement is true or false
A shift from S1 to S2 represents
A. an increase in supply.
B. a decrease in supply.
C. no change in supply.