Refer to Figure 13-1. Ceteris paribus, an increase in interest rates would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
B
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Which of the statements below best explains how the use of money in an economy adds to the wealth of the society using it? Money creates wealth
A) because it is capital. B) by earning interest. C) by making specialization less costly. D) insofar as it is invested rather than consumed.
If the market for a product begins as perfectly competitive and then becomes a monopoly, there will be a reduction in economic efficiency and a deadweight loss
Indicate whether the statement is true or false
According to the case for analysis (Demand and Supply in the Copper Industry) in the text, all of the following can lead to a decline in the price of copper except:
A) steady production uninterrupted by labor strikes or natural disasters. B) substitution away from copper to other materials such as aluminum and plastic. C) an increase in mining of higher grade materials. D) a surge in demand from foreign importers.
Private goods are those goods
A) that violate the principle of rival consumption. B) for which no public market exists. C) that can only be consumed by one individual at a time. D) to which the non-exclusion principle applies.