Suppose that a market for a product is in equilibrium at a price of $5 per unit. At any price above $5 per unit:
A. there will be an excess demand for the product.
B. there will be an excess supply of the product.
C. the quantity supplied of the product will be less than the quantity demanded of that product.
D. there will be a shortage of that product.
Answer: B
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Economists say that the economy is at "full employment" when the
A) total unemployment rate is zero. B) structural unemployment rate is zero. C) cyclical unemployment rate is zero. D) frictional unemployment rate is zero.
Refer to the figure above. What is the domestic demand for pens in Lithasia, after the economy opens up to free trade?
A) 6 units B) 12 units C) 16 units D) 22 units
Finance companies
A) issue stock and use the proceeds to purchase bonds. B) raise funds in financial markets to lend to households and firms. C) raise funds from banks to lend to households and firms. D) issue bonds and use the proceeds to purchase stock.
Whatever functions as money must be _____
a. authorized by the government b. accepted as deposit by banks c. backed by precious metals like gold or silver d. completely indestructible e. limited in supply