Figure 3-9
In , if D and S represent the demand and supply for gasoline, what is the equilibrium price and quantity?
a.
price, $1; quantity, 20
b.
price, $2; quantity, 30
c.
price, $3; quantity, 40
d.
price, $4; quantity, 50
b
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When a country abandons a no-trade policy, adopts a free-trade policy, and becomes an importer of a particular good,
a. consumer surplus increases and total surplus increases in the market for that good. b. consumer surplus increases and total surplus decreases in the market for that good. c. consumer surplus decreases and total surplus increases in the market for that good. d. consumer surplus decreases and total surplus decreases in the market for that good.
The Fed
A) clears checks. B) holds depository institutions' reserves. C) is the government's banker. D) supplies Federal Reserve Notes. E) all of the above
Describe how the real interest rate changes in a Keynesian model if a shock shifts the IS curve down and to the right and the Fed changes its policy to keep output unchanged.
What will be an ideal response?
Firms such as Taco Bell and Chipotle operate hundreds of restaurants nationwide while firms such as El Pollo Loco operates only in five states. How would you characterize these stores?
A) Taco Bell and Chipotle are duopolists while El Pollo Loco is a monopolistic competitor. B) They are all monopolistic competitors. C) Taco Bell and Chipotle are duopolists while El Pollo Loco is an oligopolist. D) Taco Bell and Chipotle are oligopolists while El Pollo Loco is a monopolistic competitor.