Economic losses in a market cause ______.
a. supply increases leading to increased prices.
b. supply increases leading to decreased prices.
c. supply reductions leading to increased prices
d. supply reductions leading to decreased prices.
c. supply reductions leading to increased prices
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Which of the following are included in interest income?
i. payments made for the use of land ii. income paid to households for loans they make iii. payments made by households for their borrowing A) i, ii and iii B) ii and iii only C) i and ii only D) iii only E) ii only
What will happen to the sizes of the M1 money supply and the M2 money supply if the following transactions take place?
a. Tasha withdraws $3,000 from her checking account and holds it as currency. b. Arturo withdraws $3,000 from his savings account and deposits it in his checking account. c. Benjamin withdraws 3,000 from his savings account and puts it in a certificate of deposit (CD). d. Marisol withdraws $3,000 from her home safe and deposits it in her savings account.
A firm would decide to shut down if its production resulted in
A) AFC > AVC. B) MR < AVC. C) ATC > AVC. D) MR < ATC.
Refer to Figure 26-14. In the figure above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could the Federal Reserve use to move the economy to point C?
A) sell Treasury bills B) decrease income taxes C) buy Treasury bills D) increase the required-reserve ratio