Which of the following scenarios would be most likely to cause the shift in the supply for loanable funds from S0 to S1, shown in the following diagram?
a) Households decide to save more.
b) Households decide to save less.
c) Businesses decide to invest more.
d) Businesses decide to invest less.
Ans: b) Households decide to save less.
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Olive Oil Spain is the world's number 1 producer of olive oil, mostly in the southern Andalusia region. But very dry weather there has ravaged olive trees. What affect will the poor weather have on the olive oil market?
The law of diminishing marginal utility states that:
a. the marginal utility of the last unit consumed of any good is less than the marginal utility of all other products consumed. b. as more of a good or service is consumed, the marginal utility derived from it, relative to other products, increases. c. as more of a good or service is consumed, the marginal utility derived from it decreases. d. as more of a good or service is consumed, the marginal utility derived from it, relative to other products, remains the same. e. the marginal utility of all products consumed must be equal.
Markets fail to maximize total surplus when:
A. society's choices impose costs or benefits on other societies. B. individual choices impose costs or benefits on others. C. when all costs and benefits are received by participants in transactions. D. producer surplus is not exactly equal to consumer surplus.
A policy aimed at promoting the development of specific industries within a country that may increase domestic welfare through trade with the rest of the world is known as a(n):
A) infant-industry policy. B) key-industry policy. C) strategic trade policy. D) welfare-trade policy.