When there is an increase in demand,
a. the demand curve shifts toward the origin of the graph.
b. the demand curve twists clockwise.
c. the demand curve shifts away from the origin of the graph.
d. the demand curve twists counterclockwise.
e. a lower price has increased the amount of the good that consumers will buy.
c
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To the casual observer it is often difficult to understand how a company would spend several million dollars building a plant or other structure and then simply stop and abandon the project midway. How can this be justified on economic grounds?
What will be an ideal response?
In an agreement to exchange dollars for euros in three months at a price of $0.90 per euro, the price is the
A) spot exchange rate. B) money exchange rate. C) forward exchange rate. D) fixed exchange rate.
The Federal Reserve System is owned by
a. federal government agencies such as the Treasury b. the Congress of the United States c. the banks that are members of the Federal Reserve System d. the legislatures of all 50 states e. people who have deposits in member banks
When the marginal benefit of an output exceeds the marginal cost:
A. Production of that output should be increased, in order to achieve efficiency B. Production of that output should be decreased, in order to achieve efficiency C. Increasing the production of that output would increase the deadweight loss D. Reducing the production of that output would reduce efficiency losses