Which of the following transactions does not take place in the markets for factors of production in the circular-flow diagram?
a. a landowner leases land to a farmer
b. a farmer hires a teenager to help with harvest
c. a construction company rents trucks for its business
d. a woman buys corn for dinner
d
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Select the phrase that correctly completes the following statement. "A positive change in technology caused an increase in the supply of flat-screen televisions. As a result ________."
A) the price of flat-screen televisions decreased. The lower price caused the supply of flat-screen televisions to decrease B) the equilibrium quantity of flat-screen televisions decreased C) the price of flat-screen televisions decreased and the demand for flat-screen televisions increased D) the price of flat-screen televisions decreased and the quantity demanded of flat-screen televisions increased
An increase in disposable income will shift the aggregate demand curve to the right
Indicate whether the statement is true or false
Refer to Figure 4.1. All else equal, a decrease in the government's budget deficit will cause
A) a shift from S1 to S2. B) a shift from S2 to S1. C) a change in the interest rate from r2 to r1. D) a change in loanable funds from L2 to L1.
Under a floating exchange-rate system, an increase in the international demand for electronic appliances manufactured in Japan will result in
A. a reduction of international reserves held by the central bank of Japan. B. an appreciation of the yen vis-à-vis other currencies. C. deflation in the Japanese economy. D. an increase in Japan's trade deficit with other countries.