Resource X is necessary to the production of good Y. If the price of resource X rises, the _____________ curve for good Y will shift ____________ resulting in a(n) _____________ in the equilibrium price of Y and a(n) ____________ in the equilibrium quantity of Y
A) supply; rightward; decrease; increase.
B) demand; leftward; decrease; decrease
C) demand; rightward; increase; increase
D) supply; leftward; increase; decrease
E) supply; leftward; increase; increase
D
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The precise terms of each futures contract are
A) negotiated by the long and the short. B) set by the short position. C) set by the long position. D) established by the exchange on which the trade takes place.
The crowding-in effect results from
a. a low MPS. b. induced investment. c. induced consumption. d. rising interest rates.
It makes sense for Wendy's to advertise its new menu that allows customers to choose fruit or salad as a substitute for French fries in its values meals, as long as doing so raises:
A. revenue by less than the cost of advertising. B. costs. C. revenue by more than it raises the cost of advertising. D. any revenue at all.
Which scenario is LEAST LIKELY to occur in a market economy?
A) The government pays farmers to stop planting certain crops for a period of time. B) The government stops a factory from producing imitations of an expensive type of purse. C) The government offers tax breaks to companies that meet efficiency goals in their products. D) The government allows only two competitors to offer goods for sale on the country's highways.