Use the following demand and supply functions: Demand:Qd = 900 - 60PSupply: Qs = -200 + 50PEquilibrium price and output are
A. P = $20 and Q = 150.
B. P = $10 and Q = 300.
C. P = $100 and Q = 5,300.
D. P = $7 and Q = 480.
Answer: B
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Refer to Table 2-11. Does either China or South Korea have an absolute advantage and if so, in what product?
A) South Korea has an absolute advantage in both products. B) South Korea only has an absolute advantage in wheat. C) China only has an absolute advantage in digital cameras. D) China only has an absolute advantage in wheat.
In the real intertemporal model, if future total factor productivity increases, this captures the effects of
A) intemporal substitution. B) Ricardian equivalence. C) the government expenditure multiplier. D) news shocks.
Which of the following is least likely to be considered a firm in an imperfectly competitive industry?
A. the only locally owned and operated bank in Severn, MD B. a Burger King in Pittsburgh, PA C. a wheat farmer in Kansas D. Ohio Bell Telephone Company
Refer to the information provided in Figure 26.1 below to answer the question(s) that follow.
Figure 26.1Refer to Figure 26.1. At aggregate output levels below $500 billion, this economy is most likely experiencing
A. a boom. B. excess capacity. C. rapid increases in the growth rate of the money supply. D. excess demand.