When there is an excess quantity supplied in the market
A) the price of the product will increase, causing a decrease in demand and an increase in supply.
B) the price of the product will increase, causing a decrease in quantity demanded and an increase in supply.
C) the price of the product will decrease, causing an increase in quantity demanded and a decrease in quantity supplied.
D) the price will increase, causing a decrease in demand and an increase in quantity supplied.
C
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According to the table, the price of Big Macs converted to U.S. dollars varies widely around the world. This shows that Big Mac pricing does NOT follow the theory of
A) Ricardian equivalence. B) purchasing power parity. C) supply and demand. D) real versus nominal prices.
"Shoe-leather costs" refer to
A) a cobbler's payment for leather. B) "rubber costs" on today's shoes. C) the inconvenience imposed by higher interest rates. D) financial deregulation of retail business firms.
Railroads, automobiles, television, computers, and genetic engineering are all examples of new industries that are believed by many economists to have triggered
a. innovation cycles b. all internal cycles c. all external cycles d. short-run cycles e. multiple-investment cycles
In the long run, a higher saving rate
a. cannot increase the capital stock. b. increases the growth rate of income. c. increases the growth rate of productivity. d. None of the above is correct.