If the costs of producing pizza increase, which will occur?
A) The supply of pizza will decrease.
B) The demand curve for pizza will shift leftward when the price of a pizza increases.
C) Pizza will cease to be produced and sold.
D) The quantity of pizzas supplied will increase as sellers try to cover their costs.
E) The demand curve for pizza will shift rightward when the price of a pizza increases.
A
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If a Japanese company sells 200 VCRs to a French company and uses the money to buy U.S. government bonds, the Japanese merchandise trade balance ________, and the Japanese financial account balance ________
A) rises; rises B) rises; falls C) falls; falls D) falls; rises
The nominal price of industrial red paint was $12 per gallon in 1993. To convert this value to the real price of paint in 2012 dollars, we should use the:
A) Consumer Price Index. B) Producer Price Index C) Fed funds rate. D) 30-day T-bill rate.
In general, the only thing that can cause a sustained increase in the rate of inflation is: a. a high rate of growth in the supply of money. b. a significant increase in unemployment
c. a decrease in real GDP. d. an increase in federal income taxes.
To maximize sales revenue, an oligopolist will expand output until the elasticity of demand becomes
a. negative. b. zero. c. one. d. infinite.