The law of supply:
A. shows that the relationship between producer revenue and quantity supplied is negative.
B. is reflected in a downsloping supply curve.
C. reflects the income and substitution effects of a price change.
D. reflects the amounts that producers want to offer at each price in a series of prices.
Answer: D
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An auction of the leases to drill for natural gas on about 55,000 acres on the Roan Plateau in western Colorado in August 2008 generated nearly $114 million, a record high for onshore energy lease sales in the lower 48 states
What is going on in the rental market for land? A) There is a decrease in the value of marginal product for an acre on the Roan Plateau, leading to an increase in the equilibrium rental rate. B) There is an increase in the value of marginal product for an acre on the Roan Plateau, leading to a decrease in the equilibrium rental rate. C) There is an increase in the supply of acreage on the Roan Plateau, leading to an increase in the equilibrium rental rate. D) There is an increase in the value of marginal product for an acre on the Roan Plateau, leading to an increase in the equilibrium rental rate.
On the long-run aggregate supply curve,
A) an increase in the price level increases the level of potential GDP. B) an increase in the price level has no effect on the aggregate quantity of GDP supplied. C) an increase in the price level reduces the aggregate quantity of GDP supplied. D) an increase in the price level increases the aggregate quantity of GDP supplied.
The credit spread is countercyclical and coincident, suggesting that a sudden increase in financial frictions is most likely ________
A) when the economy has been expanding for some time B) after the economy has turned into a recession C) during the recovery phase of the business cycle D) when expected inflation is declining
A minimum wage law creates a price (or wage) _____ and a labor _____.
A. floor; shortage B. floor; surplus C. ceiling; shortage D. ceiling; surplus