Regarding the law of supply, which of the following statements is correct?
A. The ceteris paribus assumption does not apply.
B. As the price of a good or service rises, the quantity supplied will decrease.
C. As demand falls, supply rises.
D. As the price of a good or service rises, the quantity supplied will increase.
Answer: D
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Which of the following may partially reduce the geographical disadvantages faced by poorer countries?
A) Limiting the use of natural resources so that they can be preserved for future uses B) Transferring technology from richer to the poorer countries C) Restricting the immigration of skilled workers from foreign countries to the poorer countries D) Limiting the participation of poorer countries in international trade
People who run their own businesses
A) can keep their labor costs down by not hiring any employees. B) have lower labor costs if they dislike working for anyone else than if they don't mind working for others. C) have no labor costs unless the business is incorporated. D) have the same labor costs as people who hire employees to run their businesses.
How do a partnership and a corporation differ?
A) Corporations face more taxes than do partnerships. B) Corporations can issue stocks and bonds, while partnerships cannot. C) Partnerships have unlimited liability while corporations have limited liability. D) All of these are differences between the two types of businesses.
According to the new classical economics, changes in monetary policy will only impact GDP if:
a. they impact the price level. b. they are unpredictable. c. people have perfect information about these shocks. d. None of the above.