The money supply schedule is
A) horizontal because is set by the central bank while P is taken as given.
B) horizontal because is set by the central bank.
C) vertical because is set by the households and firms while P is taken as given.
D) vertical because and P are set by the central bank.
E) vertical because is set by the central bank while P is taken as given.
E
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A shortage will result whenever:
a. the government imposes a price floor below equilibrium price. b. the government imposes a price ceiling above equilibrium price. c. the government imposes a price floor above equilibrium price. d. the government imposes a price ceiling below equilibrium price.
Comparative advantage occurs when: a. one nation can produce a good at a lower cost than its trading partners
b. the international trade of goods occurs within the same industry. c. a nation can produce a good at a lower opportunity cost than its trading partners. d. the different stages of producing a good happen in different geographic locations.
The world price of a ton of steel is $650 . Before Russia allowed trade in steel, the price of a ton of steel there was $1,000 . Once Russia allowed trade in steel with other countries, Russia began
a. exporting steel and the price per ton in Russia decreased to $650. b. exporting steel and the price per ton in Russia remained at $1,000. c. importing steel and the price per ton in Russia decreased to $650. d. importing steel and the price per ton in Russia remained at $1,000.
Which of the following statements is correct?
a. A general, persistent decline in stock prices may signal that the economy is about to enter a boom period because people will be able to buy stock for less money. b. A general, persistent decline in stock prices may signal that the economy is about to enter a recession because low stock prices may mean that people are expecting low corporate profits. c. A general, persistent decline in stock prices may signal that the economy is about to enter a recession because low stock prices mean that corporations have had low profits in the past. d. Expectations about the business cycle have no impact on stock prices.