A decrease in supply will cause
a. an increase in demand.
b. a decrease in demand.
c. an increase in quantity demanded.
d. a decrease in quantity demanded.
e. a decrease in equilibrium price.
D
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An increase in the U.S. price level (foreign prices held constant) will cause a leftward shift in the aggregate demand curve.
Answer the following statement true (T) or false (F)
Suppose that there is concern about the stability of the global financial system causing a flight to the safety of U.S. government bonds. Which of the following is NOT a likely consequence?
A) higher price of U.S. government bonds B) lower interest rate on U.S. government bonds C) increased demand for U.S. government bonds D) reduced supply of U.S. government bonds
A resource that earns only economic rent
a. cannot be employed in any other line of production, so its opportunity cost is zero b. is rental payment for a resource that has already been paid for c. is impossible because all resources have an opportunity cost associated with their use d. is not fixed in quantity e. has a perfectly elastic supply curve
The Marginal Cost curve will
a. cut ATC at the minimum of ATC but cut AVC at a point to the left of the minimum of AVC. b. cut ATC at the minimum of ATC but cut AVC at a point to the right of the minimum of AVC. c. cut AVC at the minimum of AVC but cut ATC at a point to the left of the minimum of ATC. d. cut AVC at the minimum of AVC but cut ATC at a point to the right of the minimum of ATC. e. cut both ATC and AVC at their respective minimums