Suppose the long-run supply curve for a good is upward-sloping. The upward slope could be explained by
a. increases in production costs resulting from more firms coming into the market.
b. a breakdown of the "free entry and exit" feature of competition.
c. a breakdown of the "price taking" feature of competition.
d. a stable demand curve for the good, that is, a demand curve that never shifts.
a
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If good growing conditions increase the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries bought ________
A) increases and the price might rise, fall or not change B) increases and the price rises C) doesn't change and the price falls D) doesn't change and the price rises
The largest percent of colonial trade (both exports and imports) was with
(a) the United Kingdom. (b) Southern Europe. (c) Africa. (d) the West Indies.
The typical American family spends about ____ percent of its budget on goods, and the remainder on services
a. 22 b. 34 c. 68 d. 74
Assume that the central bank increases the reserve requirement. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and reserve-related (central bank) transactions become more negative (or less positive). b. The real risk-free interest rate rises, and reserve-related (central bank) transactions become more negative (or less positive). c. The real risk-free interest rate and reserve-related (central bank) transactions remain the same. d. The real risk-free interest rate rises, and reserve-related (central bank) transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.