Refer to the accompanying figure. At a price of $9, there will be:
A. an excess demand of 1 unit.
B. an excess supply of 5 units.
C. an excess demand of 5 units.
D. an excess supply of 6 units.
Answer: B
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Intraindustry trade is characterized by what two features of the industry and market?
A) Diseconomies of scale and homogeneous products B) Non-tariff barriers and large-scale foreign investment C) Quota auctions and low effective rates of protection D) Economies of scale and differentiated products E) Government subsidies and industrial policy
Greater central bank independence is positively related to ________
A) a low rate of unemployment B) the length of terms of Governors on the Board of Governors C) a higher level of GDP D) the ability to fight inflation
When the marginal product of labor is declining, marginal costs are ______.
a. rising b. falling c. zero d. steady
The multiplier effect is the series of ________ increases in ________ expenditures that result from an initial increase in ________ expenditures
A) induced; investment; autonomous B) induced; consumption; autonomous C) autonomous; consumption; induced D) autonomous; investment; induced