When any effort by government causes the supply of a good to rise, what happens to the supply curve for that good?
(A) The supply curve is not affected.
(B) It shifts to the right.
(C) It shifts to the left.
(D) It reverses direction.
Ans: (B) It shifts to the right.
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Explain the externality generated when a shepherd grazes sheep in a field that is common property that several other shepherds use
What will be an ideal response?
If real output in an economy is 1,000 goods per year, the money supply is $300, and each dollar is spent an average of 4 times per year, then according to the quantity equation, the average price level is
a. 3.33. b. 0.83. c. 1.20. d. 13.33.
Economists would most likely use which of the following to test a hypothesis?
a. using an exact control of variables to determine buying preferences b. observing human behavior in a laboratory setting c. using surveys to ask people about their buying preferences d. observing human behavior in a retail store
When your broker sees that you are in danger of running through your money and forces you to sell your stock and use the money to pay back your loan, he is making a:
A. margin call. B. stock sales call. C. futures call. D. leverage call.