When price is $2
A. there is a surplus.
B. there is a shortage.
C. quantity demanded is less than quantity supplied.
D. price must fall to get to equilibrium.
B. there is a shortage.
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Describe two main differences between bonds and stocks
What will be an ideal response?
The major consideration of whether something can serve as money is that it must be
A. printed by each nation's government or banking authority. B. freely available to all who want it. C. exchangeable for other types of money. D. acceptable as a means of payment.
If the production possibilities curve is a straight line,
a. opportunity costs rise as output of either commodity is expanded. b. resources are not equally productive in the production of both goods. c. opportunity costs are negative. d. resources can be moved from the production of one good to production of others with no loss of productivity.
Which of the following comparisons is true regarding price elasticity of demand?
A. The demand for monthly car payments is less elastic than the demand for a monthly gym membership because the car payments require a greater share of the consumer's income. B. The demand for gasoline a year after a price change is less elastic than the demand for gasoline a week after a price change because consumers have had time to adjust. C. The demand for water is less elastic than the demand for diamonds because water is a necessity but diamonds are a luxury. D. The demand for cough syrup is less elastic than the demand for insulin because there are no close substitutes for insulin.