With an upward-sloping supply curve, which of the following istrue?
A. An increase in price results in a decrease in quantity supplied.
B. An increase in price results in an increase in supply.
C. A decrease in price results in a decrease in quantity supplied.
D. A decrease in price results in an increase in supply.
Answer: C
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The multiplier effect
A) explains what causes an expansion. B) has no impact on equilibrium expenditure. C) reinforces the negative effects of any reduction in spending. D) explains what causes a recession. E) explains how the economy recovers from a recession.
Which of the following is an example of securitization?
A) a bank bundles a group of mortgage loans and sells the bundle to investors B) an investor sells his shares of stock and uses the proceeds to purchase Treasury bonds C) a household deposits cash in a savings account that is insured by the FDIC D) a government chooses to only purchase Treasury securities from other governments that are financially sound
Figure 8-1
Which graph in Figure 8-1 shows a typical firm’s total revenue and total cost curves?
A. (a) B. (b) C. (c) D. (d)
Who is likely to be in favor of a country that would be a net-importer if it moved from autarky to free trade?
A. Domestic producers B. Domestic consumers C. Foreign consumers D. Foreign governments.