Following adjustments to a new equilibrium in a market, the market clearing price remains unchanged, but the equilibrium quantity is now lower. Which of the following could definitely have caused this outcome?
A) Demand and supply both increased.
B) Demand and supply both decreased.
C) Demand increased, and supply decreased.
D) Demand decreased, and supply increased.
B
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How do auctions help in price discovery?
What will be an ideal response?
An increase in unemployment insurance and other transfer payments may
A) increase the natural rate of unemployment. B) increase the number of discouraged workers. C) reduce the rate of inflation at every level of unemployment. D) lead to less unanticipated inflation.
Which of the following is not a criticism of monopolies?
a. They restrict output. b. They set price above the perfectly competitive level. c. They tend to be less innovative than firms in a competitive market. d. They exert a disproportionate amount of political influence. e. They reduce allocative efficiency through perfect price discrimination.
Secondary financial markets:
A. are financial markets where existing securities are bought and sold. B. are financial markets for all financial instruments rated less than investment grade. C. are only for stock. D. eliminate the transaction costs for buyers and sellers.