1. A farmer can grow wheat or corn. If the price of wheat increases, the farmer expects a better return from growing wheat. All else equal, the corn supply curve
a. shifts to the right.
b. shifts to the left.
c. stays where it is. This is a movement along the corn supply curve.
d. becomes a backward-bending curve.
2 The opportunity cost of a new public highway is the
a. other goods and services that must be sacrificed to construct the new highway.
b. money cost of hiring contractors and construction workers for the new highway.
c. cost of constructing the new highway in a future year.
d. increase traffic from the use of the new highway.
3. All else equal, which of the following will cause the demand curve for a good to shift to the left (decrease)?
a. an increase in the price of the good.
b. an expectation of a future price decline.
c. a decrease in the price of the good.
d. an increase in the supply of a good.
1. A farmer can grow wheat or corn. If the price of wheat increases, the farmer expects a better return from growing wheat. All else equal, the corn supply curve
a. shifts to the right.
b. shifts to the left.
c. stays where it is. This is a movement along the corn supply curve.
d. becomes a backward-bending curve.
2 The opportunity cost of a new public highway is the
a. other goods and services that must be sacrificed to construct the new highway.
b. money cost of hiring contractors and construction workers for the new highway.
c. cost of constructing the new highway in a future year.
d. increase traffic from the use of the new highway.
3. All else equal, which of the following will cause the demand curve for a good to shift to the left (decrease)?
a. an increase in the price of the good.
b. an expectation of a future price decline.
c. a decrease in the price of the good.
d. an increase in the supply of a good.
