Which of the following causes the supply curve to shift to the left?
a. increase in consumer’s output prices
b. increase in seller’s input prices
c. decrease in consumer’s output prices
d. decrease in seller’s input prices
b. increase in seller’s input prices
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Refer to Scenario 4 . Assume that the state originally spent one-half of its budget on schools and one-half on prisons
What was the production of schools and prisons? Could the same number be achieved after the price of producing prisons falls to $1.5 million and the price of producing schools rises to $2 million? Explain.
A monopolistically competitive firm can raise price somewhat due to
a. product differentiation b. barriers to entry c. product similarity d. its homogeneous product e. high tariffs
The substitution effect isolates the change in the consumption of a good caused by:
A. the change in consumer preferences. B. the change in the market rate of substitution. C. the lower "real" income. D. None of the statements is correct.
Which function of money allows consumers who are searching for a new car to compare the costs of different optional features of different cars in order to determine if they want the features or not?
a) Medium of exchange b) Unit of account c) Store of value d) Barter