An increase in supply of a product results when:
A. taxes on the product are increased.
B. the companies that produce the product have higher materials costs.
C. technological innovations are introduced in the manufacturing process.
D. the government reduces subsidies on the product.
Answer: C
You might also like to view...
How does a rise in the federal funds rate affect aggregate demand, real GDP, and the price level?
What will be an ideal response?
The use of a price system eliminates: a. scarcity
b. equilibrium. c. shortages and surpluses. d. changes in supply and demand.
In Cuba, all the economic decisions are taken by the government. This implies that Cuba has a _____
a. command economy b. market-oriented economy c. barter economy d. mixed economy
Investments in both physical and human capital enhance economic growth because they:
A. increases consumption during the current period. B. makes it possible for individuals to produce more goods and services per hour worked. C. encourages firms to expand output by employing more low-productivity workers. D. encourages workers to unionize and, thereby, fight for higher wages.