When evaluating differences or similarities between an increase in supply and an increase in quantity supplied, what do we know?
a) The former is a shift of the curve and the latter is a movement along the curve
b) The former is a movement along the curve and the latter is a shift of the curve
c) Both are shifts of the supply curve
d) Both are movements along the curve
Ans: a) The former is a shift of the curve and the latter is a movement along the curve
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Which view of the causes of the Great Depression emphasizes the decline in the money supply which caused aggregate demand for goods and services to shrink, leading businesses to cut production and employment?
(a) The Monetarists' (b) The Keynesians' (c) The Austrians' (d) The International View
Suppose a restaurant that is highly profitable during the summer months is unable to cover its total cost during the winter months. If it wants to maximize profits, the restaurant should
a. shut down during the winter, even if it is able to cover its variable costs during that period. b. continue operating during the winter months if it is able to cover its variable costs. c. go a out of business immediately; losses should never be tolerated. d. lower its prices during the summer months.