Which of the Following Events Would Cause a Movement Downward

question 3

Multiple Choice

Which of the following events would cause a movement downward and to the left along the supply curve for mangos?

• A)The number of sellers of mangos decreases.
• B)There is an advance in technology that reduces the cost of producing mangos.
• C)The price of mangos falls.
• D)The price of fertilizer increases,and fertilizer is an input in the production of mangos.

Understand various theories related to the determination of interest rates and their implications.

Comprehend the concept and significance of the term structure of interest rates.

Identify and describe the graphical representation of interest rates over different terms.

Explain the process and significance of stripping coupon paying treasuries.

---

Definitions:

Terms of Trade

The ratio of export prices to import prices. It shows how much import goods a country can buy for each unit of export goods it sells.

Production Possibilities

A curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors.

Economic Efficiency

Economic efficiency occurs when resources are optimally allocated to serve the needs of a society without any waste.