If supply increases, then:
A. demand will increase.
B. the quantity demanded will increase.
C. price will increase.
D. the quantity demanded will decrease.
Answer: B
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According to the quantity theory of money, deflation will occur if the
A) money supply is more than real GDP. B) money supply is less than real GDP. C) money supply grows at a slower rate than real GDP. D) money supply grows at a faster rate than real GDP.
If an excise tax is imposed on shirts,
a. the number of shirts produced will exceed the number demanded b. the number of shirts demanded will exceed the number supplied c. the equilibrium market price will decrease d. the amount consumers pay for each shirt will decrease e. the net revenue producers receive from each shirt will decrease
Answer the following statement(s) true (T) or false (F)
1. Microeconomics is the study of the whole economy, including topics of inflation and economic growth. 2. Causation occurs when two events occur together. 3. The fallacy of composition states that even if something is true for an individual, it is not necessarily true for many individuals combined in a group. 4. In the role of scientist, the economist is concerned about the ethics of human behavior.
A monopolistically competitive firm can minimize its losses by producing where ________ as long as ________.
A. P = ATC; P > MR B. MR = MC; P > AVC C. P = MR; P > AFC D. P = MC; P > ATC