Referring to a production possibilities curve and the goods being compared, depict the economic event. The bubonic plague (Black Death) in the 1300s killed one-third of Europe's population (capital goods vs. consumer goods).
A. A movement from a point inside the curve to a point on or near the curve
B. A movement from a point on or near the curve to a point inside the curve
C. A shift in the entire curve to the right (outward)
D. A shift in the entire curve to the left (inward)
D. A shift in the entire curve to the left (inward)
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Firms often seek to borrow money to expand their capital stock, and the price they pay for that money is the interest rate. What happens to the quantity of money supplied if the interest rate increases?
A. It increases. B. It decreases. C. It does not change. D. It depends entirely on the interest rate.
Nonexcludability generates a problem because individuals have an incentive to_____
a. free ride b. profit c. fight d. steal
If X and Y are substitutes, the demand curve for X will shift to the right when the price of Y decreases
a. True b. False Indicate whether the statement is true or false
The excess capacity theorem implies that
A. consumers would be better off if some monopolistically competitive firms left their markets. B. consumers would be better off with more standardization of products. C. monopolistic competition benefits society by eliminating excess capacity in production. D. monopolistic competition wastes some of society’s resources but the elimination of this waste does not necessarily benefit consumers.