The law of supply states that, holding all else constant, as the price of a good falls:
A. quantity demanded falls.
B. quantity supplied rises.
C. quantity demanded rises.
D. quantity supplied falls.
Answer: D
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The method of determining the value of land by determining what similar properties have sold for in the recent past is called the ________
Fill in the blank(s) with correct word
Refer to Figure 23-2. Suppose that the level of GDP associated with point N is potential GDP. If the U.S. economy is currently at point K,
A) firms are operating above capacity. B) the economy is in recession. C) the level of unemployment is equal to the natural rate. D) the economy is at full employment.
The OPEC oil shocks in 1973-1974 are an example of:
A) favorable supply shock, shifting the short-run aggregate supply curve rightward. B) favorable supply shock, shifting the short-run aggregate supply curve leftward. C) adverse supply shock, shifting the short-run aggregate supply curve rightward. D) adverse supply shock, shifting the short-run aggregate supply curve leftward.
Refer to the table below. If the profit for each unit of paper product is $2 and the profit for each unit of lumber is $5, the profit-maximizing quantity of lumber and paper products is located between which to points on Big Oaks' production possibilities frontier?
Big Oaks can produce either paper products or lumber with each tree that they harvest. Because Big Oaks can adjust the amount of paper products and lumber they produce from the harvested trees, paper products and lumber are produced in variable proportions. The above table summarizes Big Oaks production possibilities from each harvested tree.
B and C
B) A and B
C) C and D
D) D and E