Assume that oranges and peaches can both be grown on the same type of land, a decrease in the price of peaches, other things being equal, will cause a(n):
a. upward movement along the supply curve for oranges.
b. downward movement along the supply curve for oranges.
c. rightward shift of the supply curve for oranges.
d. leftward shift of the supply curve for oranges.
c
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If there was initially a shortage in the market for a product, then:
A. Sellers will drive the price down B. Sellers will drive the price up C. Buyers will drive the price down D. Buyers will drive the price up
If two goods are substitutes, then
A) an increase in the price of one causes the demand for the other to fall. B) there is an inverse relationship between changes in the price of one good and changes in the demand for the other. C) if the price of one good falls, the demand for the other good falls also. D) changes in the quantity demanded of one good will not affect the demand for the other.
Deficits financed by borrowed money lead to inflation, and in a fixed or crawling peg exchange rate system, this leads to the real exchange rate being undervalued
Indicate whether the statement is true or false
The number of units of one good that trade for one unit of alternative goods can be determined most easily when
A) there is one unit of account. B) the goods all weigh about the same. C) the goods are all new. D) the goods are actively traded through barter.