Any improvement in overall production technology that permits more output to be produced with the same level of inputs causes
A) a movement up the supply curve resulting in both a higher equilibrium price and quantity.
B) a rightward shift of the supply curve so that more is offered at each price.
C) no movement of the supply curve, but a fall in price and a decrease in quantity supplied.
D) a leftward shift of the supply curve so that less is offered for sale at each price.
Answer: B
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The figure above shows the costs and demand curves for the Bigshow Cable Company. Bigshow Cable Company incurs an economic loss if the regulator set its price at
A) $8. B) $6. C) $4. D) None of the above prices force Bigshow to incur an economic loss.
U.S. import spending is not affected by U.S. real income but is influenced by the economic activity of its major trading partners and the exchange rate, hence import spending is taken as autonomous
Indicate whether the statement is true or false