In the short run, a decrease in supply
A. means an upward movement along a given supply curve.
B. can only occur if market price falls.
C. may be caused by an increase in resource costs.
D. always occurs if the incomes of buyers fall sharply.
C. may be caused by an increase in resource costs.
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The marginal product of capital (MPK) can be calculated from the following ________
A) the capital share of income and the average output per unit of capital B) the capital share of income and average capital per worker C) output and capital D) the capital share of income and output E) none of the above
Suppose the short-run production function is q = 10 ? L. If the wage rate is $10 per unit of labor, then AFC equals
A) 0. B) 1. C) 10/q. D) It cannot be determined from the information provided.
When the demand for alternative investments decreases, the market for a particular bond adjusts by
a. having the supply of that bond increase. b. having the supply of that bond decrease. c. having the demand for that bond increase. d. having the demand for that bond decrease.
Which is an example of an automatic stabilizer? As real GDP decreases, income tax revenues:
A. increase and transfer payments decrease. B. and transfer payments decrease. C. and transfer payments increase. D. decrease and transfer payments increase.