A rightward shift of a market supply curve might be caused by:
a. the entry of new firms in the industry.
b. an increase in the wages of labor employed in the industry.
c. an increase in the price of the final product.
d. a decrease in the income of consumers.
e. an increase in the supply of a substitute good.
QUESTION 2In the case of positive externalities, too many people consume and produce the good compared to what is desired by society.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 3The relationship between prices and the corresponding quantities supplied is shown in a:
a. supply schedule.
b. demand schedule.
c. price-earnings ratio.
d. production possibilities curve.
e. total output schedule.
QUESTION 4When consumers or producers do not bear the full cost of their economic decisions, they tend to produce or consume more than they otherwise would.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5Ceteris paribus, a change in the quantity supplied along the supply curve of Braun coffee makers is:
a. directly related to the price of a Morphy Richards coffee maker.
b. directly related to the price of milk and cream.
c. directly related to the prices of inputs used in the production of Braun coffee makers.
d. directly related to changes in the technology used in producing coffee makers.
e. directly related to the price of a Braun coffee maker.
Quick Reply
