When floods wiped out the banana crop in Central America, the equili-brium price of bananas ________ and the equilibrium quantity of bananas ________
A. rose; increased
B. rose; decreased
C. fell; increased
D. fell; decreased
B Figure 4.12(b) on page 102 illustrates this case of a decrease in supply.
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The presence of adverse selection in a market causes:
A. some transactions to fail to take place. B. a deadweight loss. C. market failure. D. All of these statements are true.
A kinked demand curve is based on the actions of an oligopolist to follow a price increase but not a price reduction
a. True b. False Indicate whether the statement is true or false
The unregulated portion of the economy involving goods and services that are produced and exchanged without monetary transactions is known as
a. the underground economy. b. the secret economy. c. the capital consumption. d. transfer payments.
With the additional leakages of imports and taxes in additional to savings in a public, open economy, how is the economy still able to reach equilibrium?
What will be an ideal response?