Any improvement in overall production technology that produces more output with the same level of inputs causes
A. a rightward shift of the supply curve so that more is offered at each price.
B. no movement of the supply curve, but a fall in price and a decrease in quantity supplied.
C. a movement up the supply curve resulting in both a higher equilibrium price and quantity.
D. a leftward shift of the supply curve so that less is offered for sale at each price.
Answer: A
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When the Federal Reserve buys Treasury bonds, it is called
A) a swap. B) an open market operation. C) a bond roll-over. D) bonding.
A natural monopoly is created by
a. a patent b. nature c. substantial economies of scale d. government regulation e. control of scarce inputs
Economic theory simplifies relationships to explain how the relationships interact.
Answer the following statement true (T) or false (F)
If a country signs a trade agreement so that employment in some industries rises and employment in some industries fall, then
a. structual unemployment rises temporarily. b. structural unemployment rises permananently. c. frictional unemployment rises temporarily. d. frictional unemployment rises permanently.