A rightward shift of a market supply curve might be caused by:

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 2

Consider a production possibilities curve for an economy producing bicycles and video game players. It is possible to increase the production of bicycles without sacrificing video game players if:
 a. the production possibilities curve shifts outward due to technological progress.
 b. the production possibilities curve shifts outward due to increased immigration (which enlarges the labor force).
  c. the economy moves from a point inside the production possibilities curve to a point on the curve.
 d. any of the above occur.

Question 3

An increase in the ____ interest rate will lead to an increase in the ____.
 a. nominal; demand for loanable funds
 b. nominal; supply of loanable funds
 c. real; quantity of loanable funds supplied
  d. real; quantity of loanable funds demanded

Question 4

The 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 5

The circular flow of economic activity is a model of the:
 a. flow of goods, services, and payments between households and firms.
  b. influence of government on business behavior.
 c. role of unions and government in the economy.
 d. interaction among taxes, prices, and profits.

Question 6

Which of the following must be true?
 a. Savings must equal investment in an open economy.
  b. Savings must equal investment in a closed economy.
  c. Savings must equal consumption in an open economy.
  d. Savings must equal consumption in a closed economy.

Question 7

Ceteris 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.

Question 8

Which of the following is considered to be the best method of production?
 a. Capital-intensive method
  b. Least-cost method
 c. Labor-intensive method
  d. Scarce resource method

Question 9

If the government runs a deficit, which of the following will be true?
 a. T > G - TR
  b. T < G - TR
  c. T > G + TR
  d. T < G + TR

Question 10

Other things remaining unchanged, which of the following is a determinant of the quantity supplied of a good?
 a. The cost of inputs used in production
  b. The price of the product
  c. The income levels of consumers
  d. The price expectations of producers
  e. The preferences of consumers

Question 11

Countries with high labor costs tend to:
 a. rely on only one method for the production of goods.
 b. use more labor rather than capital in the production process.
  c. use more capital rather than labor in the production process.
  d. be relatively poor countries.

Question 12

Public saving equals:
 a. TR - G - T
 b. Y - C - T + TR
  c. Y + C + T + TR
  d. T - G - TR