Consider the market for broccoli. If the price of a pound of broccoli increases, what happens to the supply of broccoli?
A) The supply of broccoli decreases.
B) The supply of broccoli increases.
C) There will be no change in the supply of broccoli, but instead there is an increase in the quantity supplied of broccoli.
D) There will be no change in the supply of broccoli, but instead there is a decrease in the quantity supplied of broccoli.
C
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The five most important variables that determine the level of ________ are disposable income, wealth, expected future income, price level, and interest rate
A) consumption B) government purchases C) net exports D) planned investment
Which of the following will NOT shift the aggregate demand curve to the right?
A) a decline in the price level B) an increase in government expenditures C) an increase in investment D) an increase in the money supply
A country that must inhibit imports should give preference to
a. quotas over tariffs because quotas are less likely to distort trade patterns between nations. b. tariffs over quotas because, unlike quotas, tariffs offer no special benefits to inefficient exporters. c. export subsidies over quotas or tariffs because export subsidies can protect a nation's domestic producers. d. an embargo wherever possible because an embargo can serve as a political weapon in addition to being a "trade stopper."
Which of the following government activities is motivated by a concern about efficiency? Check all that apply.
A. Breaking up Standard Oil (which once owned 90% of all oil refineries) into several smaller companies B. Imposing higher personal income tax rates on people with higher incomes C. Providing some poor people with vouchers that can be used to buy food D. Regulating cable TV prices E. Prohibiting smoking in public places F. Instituting laws against driving while intoxicated