If the world price of a good is lower than its domestic equilibrium price, the country will:
a. import a quantity of the good equal to the difference between the quantity demanded domestically and the quantity supplied domestically.
b. export a quantity of the good equal to the difference between the quantity demanded domestically and the quantity supplied domestically.
c. import a quantity of the good equal to the difference between the quantity demanded domestically and the quantity supplied by foreign producers.
d. export a quantity of the good equal to the difference between the quantity demanded by foreign consumers and the quantity supplied domestically.
e. import a quantity of the good equal to the difference between the quantity demanded by foreign consumers and the quantity supplied by foreign producers.
a
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Which of the following would cause a decrease in the supply of peanut butter?
A) a decrease in the price of peanut butter B) an increase in the technology used to produce peanut butter C) a decrease in the price of jelly (assuming that peanut butter and jelly are complements) D) an increase the price of peanuts
The higher the marginal propensity to consume, the
a. smaller the size of the multiplier. b. larger the size of the multiplier. c. larger the propensity to save. d. larger the velocity.
The supply curve for land: a. is almost perfectly elastic
b. is almost perfectly inelastic. c. is downward sloping. d. is horizontal.
If you were the Chairman of the Fed and faced inflation, you would most likely
a. encourage commercial banks to provide loans by buying government securities b. encourage commercial banks to provide loans by raising the discount rate c. encourage commercial banks to provide loans by selling government securities d. restrict commercial bank lending by selling government securities e. restrict commercial bank lending by lowering the federal funds rate