Suppose that only one curve shifts. If you observe that the equilibrium price decreased while the equilibrium quantity increased, then the market experienced a(n):
A. decrease in supply.
B. increase in demand.
C. increase in supply.
D. decrease in demand.
Answer: C
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What is the primary difference between a sole proprietorship and a partnership?
A) Partnerships have more owners than do proprietorships. B) Partnerships can issue stocks and bonds while proprietorships cannot. C) Proprietorships have unlimited liability while partnerships have limited liability. D) There is no real difference between the two types of firms.
Vault cash is equal to $2 million, deposits by depository institutions at the central bank are $1 million, the monetary base is $15 million, and bank deposits are $35 million. Currency held by the nonbank public is
A) $3 million. B) $12 million. C) $15 million. D) $20 million.
The term "market basket" means a
A) collection of goods that can fit into an average shopping cart. B) collection of goods that changes every year and is defined by Congress. C) collection of goods that is used by a typical family. D) collection of goods that is purchased during a holiday season.
Consider the production function Q = F(L,K) = 5L2K2. Does this technology have increasing, decreasing or constant returns to scale? Explain your answer in two different ways.
What will be an ideal response?