Referring to the previous question, which of the following best describes the adjustment to the new market equilibrium?
A) Price would fall, causing quantity supplied to decrease until the new equilibrium is reached.
B) Price would rise, causing quantity supplied to increase until the new equilibrium is reached.
C) Price would fall, causing quantity supplied to increase until the new equilibrium is reached.
D) Price would rise, causing quantity supplied to decrease until the new equilibrium is reached.
B
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The only way governments can finance a deficit is by printing new money
Indicate whether the statement is true or false
If MUx/Px > MUy/Py, the consumer can increase utility by buying less of good y, which means the MUy will rise
a. True b. False
If demand for a good increases and supply remains constant equilibrium price:
a. Will increase, and equilibrium quantity will decrease b. And quantity will both increase c. And quantity will both decrease d. Will decrease, and equilibrium quantity will increase
Which of the following is a component of the incomes approach to GDP?
A) consumption expenditure B) wages and salaries C) investment D) government expenditure on goods and services