Suppose that a more efficient way to produce a good is discovered, thus lowering production costs for the good. This will cause:
a. an increase in supply, or a rightward shift of the supply curve
b. a decrease in supply, or a leftward shift of the supply curve.
c. an increase in quantity supplied, or a movement down the supply curve.
d. a decrease in quantity supplied, or a movement up the supply curve.
a
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Empirical research suggests that the steepness of the aggregate supply curve depends on the
a. size of the multiplier. b. interest rate. c. level of wage rate. d. amount of excess capacity in the economy.
Which of the following is a way to compute GDP?
a. total income earned. b. total expenditures on final goods. c. add up the market values of all final goods and services. d. All of the above are correct.
Which of the following decreases if the U.S. removes an import quota on computer components?
a. U.S. imports and U.S. exports. b. U.S. imports but not U.S. exports. c. U.S. exports but not U.S. imports. d. Neither U.S. exports nor U.S. imports.
The idea that transfer benefits to the poor encourage behavior that increases the risk of poverty is known as the
a. Samaritan's dilemma. b. rule of inverse benefits. c. implicit marginal tax law. d. Smith paradox.