Suppose the rate of inflation in a country increases from 4% to 8% within a few months. This will cause:
a. the demand curve for the currency to shift to the right
b. the demand curve for the currency to shift to the left.
c. an upward movement along the demand curve for the currency.
d. an upward movement along the supply curve for the currency.
b
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If a tax is imposed on a good,________
A) consumer surplus increases B) producer surplus increases C) the quantity of the good traded in the market increases D) the equilibrium quantity of the good in the market falls
Is it possible to have economic growth with no opportunity cost? a. Yes, economic growth requires no current sacrifices-only the passage of time
b. No, but economic growth is always worth whatever sacrifice is required. c. No, because growth depletes the stock of knowledge so that more growth today means less growth tomorrow. d. No, because growth requires the sacrifice of consumption goods in order to invest in such things as capital formation and research and development.
Market failure associated with the free-rider problem is a result of
a. a problem associated with pollution. b. benefits that accrue to those who don't pay. c. losses that accrue to providers of the product. d. market power.
Which of the following events would bring about a change in the value of the marginal product of labor?
a. technological progress that alters the amount a worker can produce b. a change in the marginal product of labor c. a change in the price of the product that the firm sells d. All of the above are correct.