Suppose that a more efficient way to produce a good is discovered, thus lowering production costs for the good. This will cause a(n):
a. Increase in supply, or a rightward shift of the supply curve
b. Decrease in supply, or a leftward shift of the supply curve
c. Decrease in quantity supplied, or movement up the supply curve
d. Increase in quantity supplied, or movement down the supply curve
a. Increase in supply, or a rightward shift of the supply curve
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"The aggregate demand multiplier results in the aggregate demand curve shifting by more than any given initial change in expenditure." Is the previous statement correct or incorrect?
What will be an ideal response?
Social savings is
A. just another way of defining security. B. the sum of government and private savings. C. government savings only. D. defined by higher rates of interest for the government.
The case of New Zealand, described in the text, draws what technical conclusion regarding the country's international debt position?
What will be an ideal response?
Which of the following statements describes the way our home equilibrium reflects the concepts of competitive markets?
I. The opportunity cost of each good is the inverse of the ratio of labor productivity. II. Prices of each good reflect opportunity cost. III. Wages are equal and reflect the value of the marginal product of labor (MPL × P) for each good. a. I b. II c. III d. I, II, and III