Are markets always in equilibrium?
A. Yes, they are always at the equilibrium point, or very close to it.
B. Yes, because few things tend to alter supply and demand.
C. No, but if there is no interference, they tend to move toward equilibrium.
D. No, they never “settle down” into a stable price and quantity.
E. Uncertain, economic theory has no answer to this question.
Answer: C
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The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. If the market is perfectly competitive and unregulated, at the equilibrium level of output,
A) resource allocation is efficient. B) resource allocation is inefficient. C) too few tons of fertilizer are produced. D) consumers must pay too high a price for fertilizer.
Which of the following is true?
A. A bondholder owes money to a corporation. B. A corporation owes money to a bondholder. C. A bondholder owns part of a corporation. D. A bondholder votes on company management.
Comparative advantage emerges because of the presence of
What will be an ideal response?
What are the unconventional policy options that central bankers can use if the traditional target interest rate hits the lower bound?
What will be an ideal response?