A headline reads "Lumber Prices Up Sharply." In a competitive market, this situation would lead to a(n):
A. Increase in the price and quantity of new homes
B. Decrease in the price and quantity of new homes
C. Increase in the price of new homes and decrease in quantity
D. Decrease in the price of new homes and increase in quantity
Answer: C
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American companies can borrow funds
A) only in U.S. financial markets. B) only in foreign financial markets. C) in both U.S. and foreign financial markets. D) only from the U.S. government.
The theory of economic rent can be used to explain high incomes received by movie stars and athletes
a. True b. False Indicate whether the statement is true or false
Which of these economic changes will shift the short-run aggregate supply curve to the left?
a. A hurricane destroying most of the agricultural land in a country b. The discovery of new oil reserves in a country c. A technological breakthrough increasing construction activities d. An increase in the number of skilled workers
Compare 2000 with 2001. Which of the following statements is (are) true? Year Quantity Sold Price 2000 30,000 $10 2001 50,000 $20 I. Demand has increased. II. Quantity demanded has increased III. Supply has increased. IV. Quantity supplied has increased V. Supply has decreased.
A. I only B. V only C. I and IV only D. I and V only E. I, II and III only