Refer to the above graph. Which factor will shift AS1 to AS2?
A. A decrease in business taxes.
B. A decrease in business subsidies.
C. An increase in real interest rates.
D. An increase in input prices.
Answer: A
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Increasing opportunity cost is represented by a ________ production possibilities frontier
A) linear B) vertical C) bowed out D) bowed in
In the United States, government policies with respect to monopolies and collusion are embodied in
A) common law, which the United States adopted from English law. B) the Supreme Court. C) antitrust laws. D) the U.S. Constitution.
What policy approach would an economist propose to internalize the externalities created by resource use? What is the basis for, and objection to, this type of policy?
What will be an ideal response?
Selling a good at a price determined by the intersection of the demand curve and the marginal cost curve is consistent with the (i) socially-optimal level of output. (ii) market solution for profit-maximizing competitive firms. (iii) market solution for a profit-maximizing monopoly
a. (i) and (ii) only b. (ii) and (iii) only c. (i) and (iii) only d. (i), (ii), and (iii)