Figure 4.5 shows the supply curves of a non-durable good. A shift from the supply curve S to S' could be caused by:
a. a patent application that restricts the use of a particular production technology.
b. a decrease in consumer income.
c. an expectation of a higher product price in the future among suppliers.
d. an increase in the current price of the product.
e. several competing producers going out of business.
Answer: c. an expectation of a higher product price in the future among suppliers.
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A) transaction costs. B) indirect financing. C) direct financing. D) moral hazard.
For a monopsonist, the marginal labor cost is always
a. equal to the wage rate b. less than the wage rate c. greater than the wage rate d. the same as the labor supply e. the same as the labor demand
Which of the following policies would Keynes's followers support when an increase in business optimism shifts the aggregate demand curve away from long-run equilibrium?
a. increase taxes b. increase government expenditures c. increase the money supply d. All of the above are correct.
Cuba is a command economy that suffered decline in economic growth because of a cut in support from the former Soviet Union when it collapsed. As a consequence, Cuba:
A. moved along its existing production possibilities curve. B. went to a point inside its production possibilities curve. C. experienced a shift inward in its production possibilities curve. D. experienced a shift outward in its production possibilities curve.