Which one of the following statements is FALSE?
A. In order to entice producers to offer more of a product on the market for sale, product price must rise.
B. There is some price at which quantity supplied of a product is zero.
C. There is an inverse (negative) relationship between product price and quantity supplied.
D. As product price increases, producers are willing to put more of the good on the market for sale.
Answer: C
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Guaranteed benefits under government programs such as Social Security or Medicare are called
A) controllable expenditures. B) entitlements. C) automatic stabilizers. D) discretionary spending.
When a macroeconomic aggregate is procyclical
A) it grows faster than GDP. B) its deviations from trend generally change before the deviations from trend in GDP do. C) its deviations from trend generally change more that the deviations from trend in GDP. D) its deviations from trend are more often of the same sign as the deviations from trend in GDP.
The planned investment function shows that
A) real gross investment falls as real NNP increases. B) a negative relationship exists between the level of planned investment and the interest rate. C) a positive relationship exists between planned consumption and planned investment. D) at higher levels of planned saving, planned investment increases.
If supply is perfectly inelastic and demand increases,
a. price falls and output rises. b. price rises and output falls. c. price rises and output remains unchanged. d. price rises and output rises.