Refer to the accompanying figure. Assume demand remains unchanged at D1. If supply shifts from S2 to S1, then the equilibrium price will ________ and the equilibrium quantity will ________.
A. rise; fall
B. fall; rise
C. fall; fall
D. rise; rise
Answer: A
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When the U.S. decides to strengthen its border control, the labor market in California is affected. We would expect the:
A. demand for labor to decrease. B. supply of labor to decrease. C. demand of labor to increase. D. supply of labor to increase.
Money is destroyed when: a. new loans are made
b. the net worth of the banking system declines. c. loans are repaid to banks. d. checks written on accounts at one bank are deposited in another bank.
Industrial machinery is an example of
a. a factor of production that in the past was an output from the production process. b. technological knowledge. c. a production function. d. an item which always has the property called constant returns to scale.
Use the following graph for a monopolistically competitive firm to answer the next question.
If curve (2) represents ATC and line (3) represents demand, then curve (1) and line (4) would be
A. MC and TR, respectively. B. TC and TR, respectively. C. AVC and MR, respectively. D. MC and MR, respectively.