When economists say the supply of a product has decreased, they mean that:
A. the supply curve has shifted to the left.
B. the product price has decreased, and as a consequence, suppliers are producing less of the product.
C. producers are now willing to sell more of this product at each possible price.
D. the supply curve has shifted to the right.
Answer: A
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At an interest rate of 6 percent, if an investment project was expected to yield $1,000 per year (to be received at year end) for each of the next three years, profit-maximizing decision makers would undertake the project only as long as the cost remained less than
a. $1,000. b. $2,577. c. $2,673. d. $3,000.
An increase in the price of gasoline will cause the demand curve for tires to shift in which direction?
A. To the left, because gasoline and tires are substitutes B. To the left, because gasoline and tires are complements C. To the right, because gasoline and tires are substitutes D. To the right, because gasoline and tires are complements E. To the right, because an increase in the price of gasoline makes consumers poorer and thus not willing to pay as much for tires
Which of the following is the objective of expansionary monetary policy?
A. an increase in employment B. a decrease in employment C. an increase in the velocity of money D. an increase in prices proportional to the rise in the money supply
Referring to Situation #1 suppose that you can now hire two workers. What is the opportunity cost of the second executive's work from the viewpoint of the company? Explain
What will be an ideal response?