Suppose that a new seed technology improves corn yield by 20%. What is the market effect of that new technology?
A. A shift to the left of the supply curve that causes an increase in the price of corn.
B. A shift to the left of the demand curve that causes a decrease in the price of corn.
C. A shift to the right of the demand curve that causes an increase in the price of corn.
D. A shift to the right of the supply curve that causes a decrease in the price of corn.
Ans: D. A shift to the right of the supply curve that causes a decrease in the price of corn.
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An increase in labor productivity relates to
A) working harder over time. B) working longer over time. C) producing the same output with fewer labor hours. D) producing the same output with more labor hours.
In part, an antitrust laws
A) provide for strict product liability. B) prohibit charging prices that customers think are too high. C) require firms with profits to pay dividends. D) prohibit monopolistic practices.
Total income is always equal to ________ expenditures; but only in equilibrium is it equal to ________ expenditures, producing in equilibrium ________ on income to change
A) actual, planned, pressure B) actual, planned, no pressure C) planned, actual, pressure D) planned, actual, no pressure
Other things being equal, an increase in the supply of money
A. reduces aggregate demand. B. increases the price level. C. reduces the amount of money balances. D. generates significant changes in relative prices.