Which is the best example of the law of supply?
a. A milling company builds a new factory to process flour to export.
b. A catering company buys a new dishwasher to make their work easier.
c. A food producer increases the number of acres of wheat he grows to supply a milling company.
d. A sandwich shop increases the number of sandwiches they supply every day when the price is increased.
Answer: d. A sandwich shop increases the number of sandwiches they supply every day when the price is increased.
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After the financial crisis in the 1990s many economists criticized the IMF and the World Bank. Some suggestions for reform are to
A) eliminate both the institutions. B) increase private-sector lending by governments providing tax breaks to lenders. C) create a board of directors made up of finance ministers for the IMF. D) all of the above
What is the term for when the production possibilities curve shifts outward?