A decrease in productivity will cause
A. AS to increase (move down and to the right).
B. AS to decrease (move up and to the left).
C. AD to decrease (move to the left).
D. AD to increase (move to the right).
Answer: B
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Assume that Ford Motor Company engineers achieve a revolutionary technological breakthrough in the production process of automobiles. Which of the following is expected to take place?
a. A movement up along the existing supply curve for Ford automobiles b. The supply of Ford automobiles will remain unchanged c. An inward shift of the supply curve for Ford automobiles d. A downward movement along an existing supply curve for Ford automobiles e. An outward shift of the supply curve for Ford automobiles
If individuals will no longer accept a currency, is it still considered to be money? a. No, because one of the main characteristics necessary for something to serve as money is that it must be generally acceptable. b. No, because of Gresham's Law
c. Yes, because the government identifies it as legal tender. d. Yes, because one of the main characteristics necessary for something to serve as money is that it must be generally acceptable.
If nothing else changes but the velocity of money doubles in the economy, the price level will decrease
Indicate whether the statement is true or false
Jeff decides that he would pay as much as $2,000 for a new laptop computer. He buys the computer and realizes a consumer surplus of $300 . How much did Jeff pay for his computer?
a. $300. b. $1,700. c. $2,000. d. $2,300.