Other things being equal, the effects of an increase in the price of orange juice would best be represented by a(n):
a. upward movement along the demand curve for orange juice.
b. leftward shift in the demand curve for orange juice.
c. downward movement along the demand curve for orange juice.
d. rightward shift in the demand curve for orange juice.
a
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If a producer must pay the cost of his or her pollution because property rights have been assigned, then
A) pollution will be completely eliminated. B) the supply curve will shift rightward as the new costs are added. C) the supply curve will shift leftward as the new costs are added. D) consumers will now consume more of the good because the external costs are reduced. E) there is no longer any marginal benefit from the good or service being produced.
The above table gives some of the costs of the Delicious Pie Company. What is the average variable cost of producing 300 pies?
A) $1,800 B) $6 C) $5 D) More information is needed to calculate the average variable cost.
In the market for reserves, when the federal funds interest rate is below the discount rate, the supply curve of reserves is
A) vertical. B) horizontal. C) positively sloped. D) negatively sloped.
An advantage of a flexible exchange rate system relative to a fixed system is that in a flexible rate system
a. currency speculation will be reduced. b. balance of payments surpluses and deficits can be dealt with using fiscal policy, not monetary policy. c. inflation will be minimized by the "discipline of the balance of payments." d. the price of imported goods will be kept relatively low. e. none of the above.