When price rises, quantity supplied increases, and vice versa. This statement is known in economics as: the Law of Increasing Opportunity Costs the Law of Supply the Law of Demand the Law of Increasing Numbers Murphy's Law Question 14 If the value of the U.S. Dollar falls relative to the value of the Japanese Yen: both U.S. exports to and imports from Japan will increase. both U.S. exports to and imports from Japan will decrease. U.S. exports to Japan will increase and imports from Japan will decrease. U.S. exports to Japan will decrease and imports from Japan will increase. Question 15 The statistic that measures the TOTAL value of all goods and services produced AND is adjusted for inflation is known as: nominal GDP real GDP national income personal income disposable income Question 16 The ATC curve is U-shaped. This statement is: True for the Short Run ONLY True for the Long Run ONLY True for BOTH the Short and the Long Run True for NEITHER the Short nor the Long Run Question 17 If an increase in demand occurs with no change in market supply, in a competitive market: equilibrium price and quantity will rise equilibrium price and quantity will fall equilibrium price will rise, equilibrium quantity will fall equilibrium price will fall, equilibrium quantity will rise neither price nor quantity will change Question 18 If a price FLOOR is implemented ABOVE the market equilibrium price, the result will be: a surplus a shortage an increase in quantity demanded a change in demand a change in supply Which of the following is NOT a reason for Market Failure? Externalities Public Goods Lack of Information in the market Too much competition all the above are reasons for market failure