In a competitive market, if the existing price is below the equilibrium price, market forces will drive the price:
a. Up and quantity supplied up
b. Down and demand down
c. Up and quantity supplied down
d. Up and supply up
a. Up and quantity supplied up
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In Moscow in 1989, what were taxi drivers using as a medium of exchange?
A) Russian rubles B) Marlboro cigarettes C) gold coins D) caviar
When average variable cost is at its minimum, it is equal to the marginal cost of production at that level of output
Indicate whether the statement is true or false
Suppose you can type a paper in two hours or mow the lawn in four hours, while it takes your friend Gabriela eight hours to type a paper or two hours to mow the lawn. Which of the following is true?
a. You have a comparative advantage in typing. b. You have a comparative advantage in mowing the lawn. c. You and Gabriela could save time if you mowed her lawn while she typed your paper. d. You and Gabriela cannot gain from specialization and trade.
To macroeconomists, investment is mainly the purchases of goods and services
A) by businesses. B) to hold as wealth, such as gold coins or art. C) to hold as wealth, such as stocks and bonds. D) by the government. E) ?b and c