Which of the following represents the law of supply?
A) An increase in the price of a good causes an increase in the supply of that good.
B) An increase in the price of a good causes a rightward shift of the supply curve for that good.
C) An increase in the price of a good causes an increase in the quantity supplied of that good.
D) all of the above
Answer: C
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Which of the following is likely to be an effect of inflation?
a. An increase in the willingness of lenders to lend money for longer periods b. A decrease in the willingness of borrowers to borrow money for longer periods c. A decrease in the purchasing power of lenders in the economy d. An increase in the willingness of people to buy bonds as a hedge against rising prices e. An increase in the willingness of people to buy physical assets as a hedge against rising prices
The monopolist's marginal revenue curve lies below the demand curve because
a. the monopoly is not an efficient producer b. as the monopolist increases output, the price falls c. there is no account of implicit costs d. the monopolist's demand curve is the market demand e. the monopolist can charge the highest price possible