When the colonies obtained independence they were no longer bound by a number of English laws, including the Navigation Acts which restricted and regulated trade. What best describes the impact of the removal of the Navigation Acts for commodities that were imported from England?
a. A shift out of the supply curve and a shift back in the demand curve, which lowered prices
b. A shift out in the supply curve, which decreased the price and increased the quantity.
c. A shift back in both the supply and demand curves, which decreased quantity.
d. A shift back in the demand curve, which lowered both price and quantity.
b. A shift out in the supply curve, which decreased the price and increased the
quantity.
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A perfectly elastic supply curve is
A) an upward sloping straight line that intersects the origin. B) horizontal. C) vertical. D) downward sloping.
An economic model will produce poor predictions if it includes unrealistic assumptions
a. True b. False
How often does the FOMC meet?
a. once a week b. once a month c. two times per year d. eight times per year
Gomez argues that we need to increase the nation's output. Chang contends that our top priority should be a more equal distribution of income and output. It can be correctly stated that these two goals are:
A. essentially unrelated. B. complementary because the realization of one will promote fulfillment of the other. C. at least partially competing because the redistribution of income might impair incentives to work and produce. D. complementary because a more equal distribution of income always promotes economic growth.