Equilibrium in a market exists when there is neither a surplus nor a shortage of the item
a. True
b. False
Indicate whether the statement is true or false
True
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Along a supply curve,
A. supply changes as price changes. B. quantity supplied changes as price changes. C. supply changes as technology changes. D. quantity supplied changes as technology changes.
Indifference curves shift or rotate
A) only when income changes. B) only when prices change. C) when either income or prices change. D) with none of the above because changes in income and prices do not shift indifference curves.
If a country has a balance of payments deficit and wishes to maintain the fixed value of its currency, it will generally
a. sell its own currency for foreign currencies. b. buy its own currency with foreign reserves. c. decrease taxes to increase domestic disposable income. d. increase the money supply to keep interest rates down.
If there are no unintended changes in inventories, the economy is at its equilibrium level of real gross domestic product (GDP) demanded.
a. true b. false