A decrease in the price of a good would
a. shift the supply curve for the good to the left.
b. give producers an incentive to produce more to keep profits from falling.
c. increase the quantity demanded of the good.
d. increase the supply of the good.
Answer: c. increase the quantity demanded of the good.
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The "store of value" function of money means it is the:
a. Asset individuals get for goods and services and then use later to purchase other goods and services. b. Barter value of a product for which a nation has a comparative advantage. c. The unit in terms of which people write contracts. d. Asset people can use to accumulate wealth. e. Unit in terms of which everything is valued and the basis for establishing relative prices between goods and services.
In the analysis of educational spending on outcomes, it is generally the case that
A. spending on raising teacher salaries and reducing class size matters. B. only the spending on reducing class size matters. C. neither higher salaries nor reduced class size matters. D. only the spending devoted to raising teacher salaries matters.
The stagflation of the 1970s is generally attributed to
a) the Cold War arms race b) the introduction of large-scale computer systems into business c) the opening of US markets to Japanese automobiles d) increases in oil prices e) changing cultural values regarding work and leisure
Which one of the following is part of the M2 definition of the money supply, but not part of M1?
A. checkable deposits B. currency held in banks C. currency in circulation D. small time deposits of less than $100,000