The fundamental reason why most supply curves are upward sloping is that
A) consumers substitute lower-priced goods for higher-priced goods.
B) the quantity supplied increases as more firms enter the market.
C) a higher price never reduces quantity supplied by enough to lower total revenue and so higher production is motivated.
D) higher production raises the opportunity costs of production and so price must rise to induce more output.
D
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A federal deficit of $300 billion means that
A) the government plans on collecting $300 billion in taxes this year. B) the government has a total debt of $300 billion. C) the government is spending $300 billion a year more than it is collecting in taxes. D) government spending is $300 billion a year.
If you own a bond with a six percent coupon rate and new bonds are paying six percent, what will happen to your bond's market price?
What will be an ideal response?
If the price of airline travel in Europe falls and the demand for train travel in Europe also falls, then the two goods are
A) complements. B) normal goods. C) substitutes. D) inferior goods.
Assume that production of a good generates external benefits for others. The equilibrium price of the good will be ____ and the equilibrium quantity ____ for efficient resource allocation
a. too high; too high. b. too high; too low. c. too low; too high. d. too low, too low.