Which of the following events shifts the aggregate demand curve leftward?
A) an increase in consumption expenditures
B) a decrease in taxes
C) a decrease in government expenditures on goods and services
D) an increase in net exports of goods and services
C
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Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. Given the scenario described, if the market price of hammers increased from $8 to $11:
A. total producer surplus would increase to $17. B. total producer surplus would increase to $5. C. total producer surplus would decrease to $1. D. total producer surplus would decrease to $7.
A decrease in the required reserve ratio would be
a. a restrictive policy because it lowers the amount of total reserves in the banking system. b. a restrictive policy because it lowers the amount of excess reserves in the banking system. c. an expansionary policy because it raises the amount of required reserves in the banking system. d. an expansionary policy because it raises the amount of total reserves in the banking system e. an expansionary policy because it raises the amount of excess reserves in the banking system.
Describe how the government differs from private firms and individuals participating in a market
Please provide the best answer for the statement.
Which of the following statements is TRUE about profits?
A) Profits are considered a cost of doing business. B) Profits are excluded from the circular flow of the income diagram. C) The only portion of profits that are included in the circular flow diagram are the portion paid out in the form of dividends. D) Profits are considered one of the resources necessary for production.