Refer to Scenario 2.1. If P = $25, which of the following is true?
A) There is a surplus equal to 30.
B) There is a shortage equal to 30.
C) There is a shortage, but it is impossible to determine how large.
D) There is a surplus, but it is impossible to determine how large.
A
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The above figure shows the market for bicycles. When there is a physical fitness craze so that everyone wants to exercise the
A) demand curve for bicycles shifts from D1 to D2. B) demand curve for bicycles shifts from D2 to D1. C) demand curve and the supply curve of bicycles do not shift. D) supply curve of bicycles shifts from S1 to S2.
Suppose you place your savings in a time deposit at the bank, and that bank lends some of those funds to a business that desires a loan. This is an example of
A) direct finance. B) indirect finance. C) asymmetric information. D) adverse selection.
Millionaires tend to be older than the general population because
a. older workers generally have more education than younger workers. b. many achieve millionaire status by saving from a relatively modest income, and this will take a lengthy period of time. c. the earnings of most people peak during the retirement phase of life. d. older people have less to do, and therefore, they have more time to come up with innovative ideas.
One of the assumptions underlying the production possibilities curve is that
A. there is at least one factor of production that is employed inefficiently. B. the quantity of the resources available for the production of economic goods is fixed over a given time period. C. at least one of the factors of production is a free good. D. some of the factors of production are not being used.