Distinguish between a change in quantity supplied and a change in supply
What will be an ideal response?
A change in quantity supplied is a movement along the supply curve caused by a change in the price of the good. An increase in price causes an increase in quantity supplied. A change in any of the other determinants of supply cause a change in supply. When there is a change in supply, the entire supply curve shifts either to the right or to the left.
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Either an increase in autonomous net taxes or a decrease in government purchases can close an expansionary gap
a. True b. False Indicate whether the statement is true or false
Suppose all banks are subject to a uniform reserve requirement of 20 percent and that the Gamblers Last Chance Bank of Las Vegas has zero excess reserves. If a new customer deposits $10,000, the bank can now extend new loans up to a maximum of: a. $2,000
b. $8,000. c. $10,000. d. $50,000.
What will happen to the equilibrium price and quantity of traditional camera film if traditional cameras become more expensive, digital cameras become cheaper, the cost of the resources needed to manufacture traditional film falls, and more firms decide to manufacture traditional film?
a. Price will fall, and the effect on quantity is ambiguous. b. Price will rise, and the effect on quantity is ambiguous. c. Quantity will fall, and the effect on price is ambiguous. d. Quantity will rise, and the effect on price is ambiguous.
Which of the following statements is correct?
a. NASDAQ is an important stock exchange in the United States. b. The demand for a corporation's stock is largely based on people's perception of the corporation's profitability in the future. c. Compared to the Standard & Poor's 500 Index, the Dow Jones Industrial Average incorporates the stock prices of a much smaller number of corporations. d. All of the above are correct.