Which of the following events would cause the supply curve to decrease from S1 to S2?
A. lower expected future prices
B. an increase in the price of inputs
C. an increase in the number of firms in the market
D. a decrease in the price of inputs
Answer: B. an increase in the price of inputs
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During a recession, people drop out of the labor force because they are unable to find a job. All else the same, this
A) increases the official U-3 unemployment rate. B) decreases the official U-3 unemployment rate. C) does not change the official U-3 unemployment rate. D) increases the official U-3 unemployment rate and the labor force participation rate.
The balance sheet of a depository institution lists:
a. loans to private individuals as assets. b. excess reserves as liabilities. c. checkable deposits as liabilities. d. required reserves as liabilities. e. loans from the central bank as assets.
The figure below shows the production-possibility curves of Canada (AB) and the rest of the world (CD). I1 and I2 are community indifference curves for Canada and the rest of the world. In the absence of trade, Canada consumes ________ bales of cotton and ________ bushels of wheat.
A. twenty; six B. twelve; eleven C. sixteen; six D. twenty; three
The price of a good always changes when
A. there is an increase in demand and an increase in supply. B. either a shortage or a surplus occurs. C. there is a decrease in demand and a decrease in supply. D. quantity demanded and quantity supplied are constant.