How will an increase in lumber prices influence the home construction market?
a. The demand for newly constructed homes will increase.
b. The demand for newly constructed homes will decrease.
c. The supply of newly constructed homes will increase.
d. The supply of newly constructed homes will decrease.
QUESTION 2When economists say the supply of a product has decreased, they mean that:
a. the supply curve has shifted to the left.
b. the product price has decreased, and as a consequence, suppliers are producing less of the product.
c. producers are now willing to sell more of this product at each possible price.
d. the supply curve has shifted to the right.
QUESTION 3A technological improvement in producing good A would be a shift in the:
a. supply curve for A to the right. b. supply curve for A to the left.
c. demand curve for A to the right. d. demand curve for A to the left.
QUESTION 4Which of the following is most likely to increase the supply of corn?
a. The farm worker's union successfully negotiates a pay increase for corn harvest workers.
b. The Surgeon General announces that eating corn bread contributes to baldness in men.
c. Congress and the President eliminate subsidies formerly paid to corn farmers.
d. Farmers that grow soybeans can also grow corn, and the price of soybeans drops by 75 percent.
QUESTION 5Which of the following will cause a movement along the supply curve?
a. An increase or decrease in the raw materials costs.
b. An increase in labor costs.
c. Changes in the cost of the machinery used to make a good.
d. Changes in the market price of a good, other things held constant.
QUESTION 6Which of the following will not cause a movement along the supply curve?
a. Changes in the sellers' expectations. b. Increases in taxes per unit of output.
c. Advances in technology. d. All of these.
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