A bubble is best defined as a(n)
A. increase in the price of an asset resulting from fundamental causes.
B. increase in the price of an asset resulting from factors other than fundamental causes.
C. decrease in the price of an asset resulting from fundamental causes.
D. decrease in the price of an asset resulting from factors other than fundamental causes.
Answer: B
You might also like to view...
When the price level in the United States falls relative to the price level of other countries, ________ will fall, ________ will rise, and ________ will rise
A) exports; imports; net exports B) net exports; imports; exports C) net exports; exports; imports D) imports; exports; net exports
Suppose the price elasticity of supply for cheese is 0.6 in the short run and 1.4 in the long run. If an increase in the demand for cheese causes the price of cheese to increase by 15%, then the quantity supplied of cheese will increase by
a. 0.4% in the short run and 4.6% in the long run. b. 1.7% in the short run and 0.7% in the long run. c. 9% in the short run and 21% in the long run. d. 25% in the short run and 10.7% in the long run.
After a certain nation changed its policy from one that banned international trade in wheat to one that allowed international trade in wheat, the nation began importing wheat. As a result, total surplus in the wheat market increased by $10 million. Which of the following changes could have occurred as well?
a. The price of wheat in that nation increased with the adoption of the new policy. b. The domestic quantity of wheat supplied increased with the adoption of the new policy. c. Consumer surplus in the wheat market increased by $7 million and producer surplus in the wheat market increased by $3 million. d. Consumer surplus in the wheat market increased by $15 million and producer surplus in the wheat market decreased by $5 million.
With a home monopolist, the imposition of a tariff results in:
a. a higher deadweight loss than a quota. b. a higher price for consumers than a quota. c. a lower deadweight loss than a quota. d. the same welfare effects as a quota.