A decrease in supply raises the price of a good, but it also decreases the quantity demanded, which lowers the price of a good. The net effect on price is ambiguous.
a. true
b. false
Answer: b. false
You might also like to view...
An economic variable that is measured per unit of time, such as spending per year, is known as a: a. stock variable
b. periodic variable. c. dummy variable. d. flow variable. e. controlled variable.
A global network that provides knowledge and resources to developing countries is called the:
A. International Resource Fund. B. World Bank. C. World Trade Organization. D. United Nations Development Program.
What will happen if there is an increase in an existing tariff on grapes from Argentina?
a. There will be an increase in domestic production of grapes. b. There will be an increase in total American consumption of grapes. c. There will be an increase in American consumption of domestically produced grapes. d. There will be an increase in American imports of grapes from Argentina.
If the opportunity cost of producing wheat in Canada is four buffalo and the opportunity cost of producing wheat in the U.S. is two buffalo then we know that
a. Canada has both a comparative advantage and absolute advantage producing wheat b. Canada has a comparative advantage producing wheat c. the U.S. has an absolute advantage producing wheat d. the U.S. has both a comparative advantage and absolute advantage producing wheat e. the U.S. has a comparative advantage producing wheat