Assume a market initially exhibits a shortage. Assuming that both prices and quantities are flexible, which of the following will be true after the market adjusts to equilibrium?
A) Price is lower.
B) Quantity demanded is greater.
C) Quantity supplied is more.
D) Quantity supplied will be reduced.
Ans: C) Quantity supplied is more.
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Refer to Figure 13.1. If the voting method used to select a location for the recreation center is the plurality-rule method, the recreation center will be built in
A) Desert Sands. B) Glacier Cove. C) Mountain View. D) Oceanside.
The level of output at which all economies of scale have been exhausted is known as
A) constant returns to scale. B) optimal economic size. C) minimum efficient scale. D) the economically efficient output level.
According to the information in the table shown, if someone were earning $20,000 in Mexico, approximately what would he need to earn in the United States to enjoy the same amount of goods and services?
This table shows the price-level adjustment as compared to the United States.
A. $30,303
B. $35,000
C. $20,030
D. $15,000
Which of the following statements about inflation targeting is true?
a. Inflation targeting allows the central bank to achieve multiple goals like low unemployment and economic growth. b. Inflation targeting has not been adopted by the Fed. c. A central bank that adopts inflation targeting is intrinsically dependent on fiscal policy. d. Inflation targeting decreases the perceived uncertainty derived from the central bank's course of action. e. Inflation targeting increases the uncertainty associated with the central bank's course of action.