Excess supply is:
A. the result of a price that is above equilibrium, causing the quantity demanded to exceed the quantity supplied.
B. the result of a price that is below equilibrium, causing the quantity demanded to exceed the quantity supplied.
C. the result of a price that is above equilibrium, causing the quantity supplied to exceed the quantity demanded.
D. the result of a price that is below equilibrium, causing the quantity supplied to exceed the quantity demanded.
C. the result of a price that is above equilibrium, causing the quantity supplied to exceed the quantity demanded.
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If Sean thinks that the choice between going to Olive Garden or Red Lobster is simply too confusing, a behavioral economist will explain that Sean is showing ________
A) the endowment effect B) bounded rationality C) bounded self-interest D) bounded will power
Which question is an example of a microeconomic question?
A. What should the Federal government do to reduce the trade deficit with Japan? B. Will the merger of two airlines likely lead to higher cost of air travel in the economy? C. What factors are contributing to the steep rise in the federal government's total debt? D. Will the inflation rate remain relatively stable this year?
The real exchange rate is:
A. the best measurement we have to get a sense of whether purchasing power parity holds or not. B. a useful proximity of how far your dollars will go in another country. C. difficult to calculate because it relies on very different "typical" baskets of goods. D. All of these statements are true.
Demand curves are derived while holding constant
A. income, tastes, and the prices of other goods. B. only tastes and the prices of other goods. C. income, tastes, and the price of the good. D. only income and tastes.