An increase in the equilibrium price and the equilibrium quantity would be caused by an increase in supply
a. True
b. False
Indicate whether the statement is true or false
False
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Terms of trade refers to
A) the relative price at which trade occurs. B) what goods are imported. C) what goods are exported. D) the volume of trade. E) the tariffs applied to trade.
All the factors below are causes of diminishing marginal returns, except
a. Difficulty of monitoring and motivating larger workforces b. Increasing complexity of larger systems c. Division of Labor d. The "fixity' of some factor
Assume that an oligopolist has a kinked demand curve. Suppose that the marginal cost curve passes through the gap in the marginal revenue curve. This means price and output will be shown by a point:
a. above the curve. b. below the curve. c. at the kink d. on the upper part of the curve. e. on the lower part of the curve.
How will an increase in price tend to affect demand?
a. Demand will increase. b. Demand will decrease. c. Demand will not change. d. Uncertain.