If the price of rubber (an input to the production of tires) increases:
A. the supply of tires will increase.
B. the demand for tires will decrease.
C. the supply of tires will decrease.
D. the demand for tires will increase.
Answer: C
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Private investment from a foreign country is known as
a. development assistance. b. foreign direct investment. c. technical progress. d. the cost disease of personal services.
Time lags in the design, authorization, and implementation of fiscal policy reduce its effectiveness.
Answer the following statement true (T) or false (F)
Which of the following conditions distinguishes monopolistic competition from perfect competition?
a. the number of sellers in the market b. the freedom of entry and exit by firms in the market c. the size of firms in the market d. product differentiation
An open market purchase by the Fed:
A. increases the total amount of reserves in the banking system. B. decreases the total amount of reserves in the banking system. C. does not change the total amount of reserves in the banking system. D. causes the reserve requirement to fall.