In general, supply curves slope upward because:
A. the government requires that more units be produced.
B. rising prices provide producers with a greater profit incentive.
C. consumers buy a greater quantity.
D. technology improves the ability of firms to produce more at each possible price.
Answer: B
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On Tuesday, a movie theater discounts tickets to all shows. What would we expect to see happen to popcorn on Tuesdays?
A. Increased demand for popcorn B. Decreased supply of popcorn C. Decreased demand for popcorn D. Increased supply of popcorn
Suppose, while cleaning out its closets, a worker at the Federal Reserve bank branch in Memphis discovers a painting of Elvis (medium: acrylic on velvet) that used to grace the walls of the conference room
Suppose further that, at a public auction, the bank sells the painting for $19.95. This sale will cause ________ in the monetary base, everything else held constant. A) an increase of $19.95 B) an increase of more than $19.95 C) a decrease of $19.95 D) a decrease of more than $19.95
Describe the differences (in sign and relative magnitude) between the government purchases multiplier and the tax multiplier
What will be an ideal response?
Aji Fatou, a U.S. residents, buys a designer dress produced by an American-owned fashion shop in France. As a result:
a.) US consumption increases, US net exports decrease, and U.S. GDP is unaffected. b. US consumption increases, US net exports decrease, and U.S. GDP increases. C. US consumption increases, US net exports decrease, and U.S. GNP decreases. d. US consumption increases, US net exports are unaffected, and U.S. GDP is unaffected.