If demand increases, then the
A. equilibrium quantity goes down.
B. demand curve shifts to the right.
C. equilibrium price goes down.
D. demand curve shifts to the left.
Answer: B
You might also like to view...
In the presence of asymmetric information, a hire contract
A) achieves production efficiency. B) can lead to opportunistic behavior on the part of the agent. C) is impossible to write. D) will result in the principal earning all of the profit.
If Dana can paint his house faster than Luke, a professional house painter, then
a. Dana has a comparative advantage in house painting b. Dana has an absolute advantage in house painting c. Luke has a comparative advantage in house painting d. Luke has an absolute advantage in house painting e. Dana should always paint his own house
Refer to Figure 9.2. At price 0H and quantity Q1, the deadweight loss is
A) DGC. B) BDC. C) BGC. D) 0FGQ1. E) none of the above
An indirect cost of government debt is:
A. it can distort the credit market and slow economic growth. B. it can cause unemployment below the natural rate. C. it can cause hyperinflation. D. All of these are true.