The law of supply reflects the fact that
A) people buy more of a good when its price falls.
B) suppliers have an incentive to use their resources in the way that brings the biggest return.
C) the demand curve is downward sloping.
D) higher prices are more attractive to consumers because they signal a higher quality product.
E) businesses can sell more goods at lower prices.
B
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A nation running a persistent balance of payments surplus while part of a fixed exchange rate system would be required to __________ international reserves in an effort to prevent its currency from __________
A) amass; appreciating B) amass; depreciating C) pay out; appreciating D) pay out; depreciating
Which of the following is not correct?
a. Countries that have had higher output growth per person have typically done so without higher productivity growth. b. A country's standard of living and its productivity are closely related. c. Productivity refers to output produced per hour of work. d. Increases in productivity can be used to increase output or leisure.