If the prices of imported resources decrease, then this event would most likely:
A. increase aggregate demand.
B. increase aggregate supply.
C. decrease aggregate demand.
D. decrease aggregate supply.
Answer: B
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The $14.3 billion U.S. craft beer market is being subsidized at local, state, and even federal government levels, and the taxpayers pay for these subsidies. Economists know that these subsidies make Americans poorer on the whole
Why is it so difficult for U.S. taxpayers to end these subsidies for the craft beer market, a market which has been described as "booming" and "highly successful"?
Economists often refer to taxes, subsidies, legal rules, and public auctions as methods of indirect regulation. Explain what this means and what are its limitations
What will be an ideal response?
This table shows the demand and supply schedule of a good.
According to the table shown, at a price of $2.00 quantity demanded:
A. exceeds quantity supplied and a shortage exists.
B. is less than quantity supplied and a shortage exists.
C. exceeds quantity supplied and a surplus exists.
D. is less than quantity supplied and a surplus exists.
Explain in a paragraph why the quantity demanded for non-renewable resources will be zero when the supply runs out.
What will be an ideal response?