Alternate Outputs from One Day's Labor Input: United States: 12 bushels of wheat or 3 yards of textiles. Great Britain: 3 bushels of wheat or 12 yards of textiles. The opportunity cost of one bushel of wheat in Great Britain is
a. 1 yard of textiles

If the demand curve for a good is horizontal and the price is positive, then a leftward shift of the supply curve results in

A) a price of zero. B) an increase in price. C) a decrease in price. D) no change in price.

In the above figure, if we begin at S2 and the Fed buys bonds

A) the price of bonds falls, and the interest rate rises. B) the price of bonds falls, and so does the interest rate. C) the price of bonds rises, and so does the interest rate. D) the price of bonds rises, and the interest rate falls.