A decrease in supply is caused by:
A) an increase in returns from other alternative activities.
B) suppliers' expectations of lower prices in the future.
C) an advancement in the technology for producing the good.
D) a decrease in the price of a good using the same resources.
Ans: A) an increase in returns from other alternative activities.
You might also like to view...
The long-run average cost curve may initially slope downward due to
A) decreasing average fixed costs. B) increasing marginal returns. C) economies of scale. D) All of the above.
Which of the following would be least likely to cause the production possibilities curve to shift outward?
a. a decreased desire for leisure by workers in the economy. b. an invention that requires fewer resources to produce a good. c. a shift in consumer preferences that causes expansion in the output of one product and a decline in output of other products. d. an expansion in the man-made productive resources available to the economy as the result of a high rate of investment.
The firms in an oligopoly market structure agree to collude because:
a. it helps them to earn more profits. b. each firm wants to know the strategy of its rivals. c. each firm wants to charge a lower price for its product than its rivals. d. the firms want to maintain a healthy relationship with each other. e. it helps them to enjoy economies of scale.
If the United Auto Workers' Union obtained a 15 percent increase in the wages of its workers, employment in the auto industry would most likely fall if
a. the demand for American-made automobiles was highly inelastic. b. American consumers considered foreign automobiles a poor substitute for American-made automobiles. c. the demand for American-made automobiles was highly elastic. d. the demand for American-made automobiles was increasing.