An upward-sloping supply curve implies that:
A. quantity supplied increases when price decreases.
B. there is no relationship between price and quantity supplied.
C. quantity supplied increases when price increases.
D. the law of supply is invalid.
Answer: C
You might also like to view...
A monopsony has
a. one seller. b. a single buyer. c. many sellers. d. many buyers.
The average tax rate is
a. the ratio of additional taxes to an additional dollar of income. b. the ratio of taxes to income. c. the ratio of taxes to GDP. d. the ratio of income to direct taxes.
Refer to the graph shown. Currently, if this perfectly competitive firm is maximizing profit, the market price is:
A. $5.00 and marginal revenue for the firm is $3.00 B. $5.00 and marginal revenue for the firm is $5.00 C. $6.50 and marginal revenue for the firm is $6.50 D. $6.50 and marginal revenue for the firm is $5.00
If the Fed were to set policy according to the Taylor rule, then if real GDP falls by 2 percent below potential GDP, the Fed should:
A. raise the real federal funds rate by 1 percentage point. B. reduce the real federal funds rate by 1 percentage point. C. raise the inflation rate by 1 percentage point. D. change the real federal funds rate until inflation hits the target rate of 4 percent.