Answer the following statements true (T) or false (F)
1. A decrease in the prices of computer chips for PCs will increase the supply of PCs.
2. The development of a new production technique that lowers the cost of producing 3-D movies will shift the supply curve of 3-D movies to the right.
3. A surplus indicates that the quantity demanded is greater than the quantity supplied at that price.
4. If we observe the price of a good in a competitive market rising, then we can conclude that there had been a shortage in the market.
1. TRUE
2. TRUE
3. FALSE
4. TRUE
You might also like to view...
Contractionary monetary policy on the part of the Fed results in
A) an increase in the money supply, a decrease in interest rates, and an increase in GDP. B) a decrease in the money supply, an increase in interest rates, and a decrease in GDP. C) a decrease in the money supply, a decrease in interest rates, and a decrease in GDP. D) an increase in the money supply, an increase in interest rates, and an increase in GDP.
The yield of a stock is the
A) dividend divided by the closing price per share. B) dividend divided by the average daily price of the stock. C) closing price divided by the 52-week low price. D) dividend divided by the opening price per share.
Which of the following statements is true?
A) A rational economic agent is not likely to optimize. B) Cost-benefit analysis can also be used for normative economic analysis. C) Cost-benefit analysis does not yield the same result as optimization analysis. D) The net benefit of an option that costs $50 and provides a benefit of $100 is equal to $150.
Models that are similar to RBC models but allow for shocks other than productivity shocks are known as
A) DSGE models. B) Keynesian models. C) Solow models. D) Friedman models.