The AD curve shifts rightward if taxes decrease
a. True
b. False
A
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Use the following diagram to answer the next question.
The most likely cause for a shift in the production possibilities frontier from AB to CD is
A. the use of the economy's resources in a less efficient way. B. an increase in government purchase of the economy's output. C. an increase in the quantity and quality of labor resources. D. an increase in the spending of business and consumers.
When there is a surplus of a product in a market the:
a. price will rise. b. price must be above the equilibrium price. c. producers will expand output and sales will rise. d. price must be below the equilibrium price.
A country’s level of well-being is determined primarily by its level of
A. population growth. B. educational attainment. C. capital stock growth. D. natural resource growth.
The difference between what producers receive at the market clearing price and the total amount that they would have been willing to accept for the total quantity produced in a market is called
A. producer surplus. B. market surplus. C. excess demand. D. production excess.