Assume the typical shapes of the demand and supply curves. If both demand and supply increase in a competitive market, the equilibrium price will
a. always rise
b. always fall
c. rise if demand increases more than supply increases
d. fall if demand increases more than supply increases
e. remain unchanged
C
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Privatizing a commons tends to lead to a faster depletion of the resource
Indicate whether the statement is true or false
For national security reasons a government decides that all of its base metal industry should not be located in the same geographical region, as it presently is
The government decides to allocate production quotas to firms in different parts of the country, but does not restrict in any way the transactions between consumers and base metal producers. This scheme is A) efficient as consumers still buy from whoever they like. B) efficient as those consumers who value base metals the most can purchase them. C) likely to be inefficient as some of the industry's output is not produced by the firms with the lowest cost. D) likely to be inefficient as the scheme will require subsidies to work. E) efficient as learning by doing effects will be strongest in the firms set up in new geographical regions.
Part of the story of the interest rate effect is that a lower price level causes __________ in the demand for credit, which then causes the interest rate to __________
A) a decrease; fall B) a decrease; rise C) an increase; fall D) an increase; rise
In the first week in March 1933, ______ banks had shut their doors.
A. a few B. nearly half C. most D. all