The concept of "market clearing" is adopted and defended by
A. fine-tuning economists.
B. Classical economists.
C. Keynesian economists.
D. demand-side economists.
Answer: B
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The quantity supplied of a good:
A) is inversely related to the price of the good. B) is determined irrespective of the market price. C) is always equal to the quantity demanded of the good. D) is the amount of the good that sellers are ready to supply at a given price.
Financial markets and financial intermediaries comprise the financial system
Indicate whether the statement is true or false
A village has five residents, each of whom has an accumulated savings of $50. Each villager can use the money to buy a government bond that pays 10 percent interest per year or to buy a year-old goat, send it onto the commons to graze, and sell it after one year. The price of the goat that the villager will get at the end of the year depends on the amount of weight it gains while grazing on the commons, which in turn depends on the number of goats sent onto the commons, as shown in the table below. Assume that if a villager is indifferent between buying a bond and buying a goat, the villager will buy a goat.Number of goatson the commonsPrice per 2-yearold goat ($)Income pergoat ($/year)180302752537020465155555 If the villagers purchase the socially optimal number of goats and bonds,
then total village income will be ________. A. $15 B. $125 C. $250 D. $70
Which of the following would represent a systematic error?
A. Eddie regularly overspends, but friends and family bail him out so he always ends up with what he wants. B. Ellen paid good money for a used car that is in constant need of repair. C. Sparky determines that he has to reduce donut consumption to lose weight but always ends up eating the ones provided in the break room at work. D. Clark makes regular math errors at work, sometimes coming out with figures too high, other times too low.