Refer to the accompanying figure. At a price of $3, there will be:
A. an excess supply of 2 units.
B. an excess supply of 7 units.
C. an excess demand of 7 units.
D. an excess demand of 5 units.
Answer: D
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The U.S. economy has seen a faster increase in productivity since the mid-1990s as compared to the economies of many Western European countries. Which of the following explains this?
A) The United States has a higher rate of job mobility than do many Western European countries. B) U.S. unions impose stricter work rules as compared to unions in Western European countries. C) U.S. government regulations impose stricter work rules as compared to government regulations in Western Europe. D) U.S. workers can obtain unemployment insurance for a longer period of time as compared to workers in most Western European countries.
Refer to Figure 3-2. A decrease in the expected future price of the product would be represented by a movement from
A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.
Economists use ____ economic analysis to understand an individual market. They then use ____ economic analysis to guide future national economic policy
a. b and d b. macro; micro c. positive; normative d. normative; positive
The Keynesians offer a different view of the quantity theory of money from the classical economists and monetarists in that they
a. accept the idea that V is stable and predictable b. believe a price increase may lead to an increase in money velocity c. believe Q always reflects full-employment GDP d. believe that changes in the supply of money never affect P or Q e. believe that an increase in the money supply can lower real GDP because the economy is always at full employment