The law of supply states that:
A. there is a negative relationship between the price of a good and the quantity of it purchased by suppliers.
B. there is a positive relationship between the price of a good and the quantity that buyers choose to purchase.
C. there is a positive relationship between the price of a good and the quantity of it offered for sale by suppliers.
D. at a lower price, a greater quantity will be supplied.
Answer: C
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Which of the following statements describes the difference between real and nominal GDP?
A. Real GDP includes only goods; nominal GDP includes goods and services. B. Real GDP is measured using constant base-year prices; nominal GDP is measured using current prices. C. Real GDP is equal to nominal GDP less the depreciation of the capital stock. D. Real GDP is equal to nominal GDP multiplied by the CPI.
Deadweight costs in an exchange are costs
A) charged for free goods. B) imposed by government, such as taxes or safety requirements. C) that have no effect on either the quantity demanded or the quantity supplied. D) that have nothing to do with the sacrifice of valuable opportunities. E) to the buyer that are not simultaneously benefits to the seller.
On which of the following government spending projects would the crowding out effect most likely be the greatest?
A) government spending on farm subsidies B) government spending on improvements in infrastructure C) government spending on research and development D) government spending on education
What happens in a duopoly if both firms try to act as the Stackelberg leader?
What will be an ideal response?