Which of the following statements is true?
A. Printing too much money usually leads to lower prices.
B. Printing currency can be a profitable venture for a government.
C. In the modern economy the amount of money created has no effect on prices.
D. Printing currency, while necessary, is a losing venture for a government.
Answer: B
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If demand rises and supply falls, which of the following must be true?
a. The equilibrium quantity will rise. b. The equilibrium quantity will fall. c. The equilibrium quantity will not change. d. The change in the equilibrium quantity is indeterminate.
An increase in the quantity supplied of a good is most often due to:
A. lower prices. B. higher prices. C. an increase in the price of a substitute. D. more buyers entering the market.
The French economist Jean-Baptiste Say transformed the equality of total output and total spending into a law that can be expressed as follows:
A. Unemployment is not possible in the short run. B. Demand and supply are never equal. C. Supply creates its own demand. D. Demand creates its own supply.
According to the text, government licensing frequently enables monopoly in
A) agriculture. B) electricity production. C) mining. D) retail sales.