A decrease in the price of spaghetti is likely to cause:
A. an outward shift of the demand curve for spaghetti.
B. a movement to the right along the demand curve for spaghetti.
C. an inward shift of the demand curve for spaghetti.
D. a movement to the left along the demand curve for spaghetti.
Answer: B
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If more European and Japanese firms want to build factories and expand their offshore investments in the United States, the supply of U.S. dollars on foreign exchange markets will increase as a result of this investment activity
Indicate whether the statement is true or false
If at its current production level, a perfectly competitive firm's marginal revenue and long-run marginal cost are equal to $1.50 and its long-run average cost is $1.65, which of the following statements is true?
A) The firm should expect the market price of its product to increase. B) The firm should expect to earn positive economic profit indefinitely. C) The firm should expect the market price of its product to fall. D) The firm should expect the market supply curve to increase.
In order to get children to eat all the food they've served, regardless of their hunger, mothers have relied for decades on the argument that "there are starving children in Africa." Assuming the presence of hungry children on another continent does not affect the utility you derive from the food on your plate, if you choose to force down food based on this argument, you are:
A. acting irrationally. B. acting rationally. C. caring more about starving children than your own well-being. D. doing your part in the fight against world hunger.
Answer the following questions true (T) or false (F)
1. The supply of money is easier to control with commodity money than it is with fiat money. 2. Liquidity increases as we move from the M1 to the M2 definition of the money supply. 3. The amount of national income in an economy equals the money supply in an economy.