In general, supply curves slope upward because:
a. increases in the price of a good result in lower opportunity costs.
b. rising prices provide producers with a greater profit incentive.
c. consumers buy a greater quantity.
d. technology improves the ability of firms to produce more at each possible price.
b
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The corporate income tax is the single largest source of revenue for the federal government.
Answer the following statement true (T) or false (F)
A consequence of adverse selection is:
A. buyers and sellers may lose surplus they would have gained with more complete information. B. too many transactions occur of low value. C. sellers violate the law when giving false information to buyers.
An argument against price floors is:
A. non-price rationing must occur, and can lead to consumers waiting in line. B. the cost to taxpayers if the government buys all surplus. C. producers will reduce the quality of the goods they sell. D. they transfer surplus from producers to consumers.
The frictional unemployment rate is 2.5 percent, the structural unemployment rate is 3.1 percent, and the economy's current unemployment rate is 5.6 percent. The economy is in
A) an inflationary gap producing more than Natural Real GDP. B) a recessionary gap producing more than Natural Real GDP. C) an inflationary gap producing Natural Real GDP. D) a recessionary gap producing less than Natural Real GDP. E) long-run equilibrium.