In a market system, what must take place for quantity demanded to continually be equated with quantity supplied?
A) Price controls must be applied by governments.
B) Relative prices must be able to adjust to market clearing levels.
C) Tastes and preferences of consumers must adjust to eliminate surpluses or shortages.
D) Businesses must engage in involuntary, unprofitable exchanges to eliminate surpluses or shortages.
B
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What will be an ideal response?
President George W. Bush's tax cut in 2001 was a rare example of
a. timely monetary policy. b. timely fiscal policy. c. the slow response of policy to events. d. the inability of Congress to react to policy needs.
Most unemployed low-skilled workers are ______.
a. between QD and QS
b. to the left of QD
c. to the right of QS
d. between 0 and QS
When the president says that "Income inequality is a much more serious economic problem than high unemployment rates," it is an example of
A. an irrational argument. B. an empirically proven fact. C. a positive statement. D. a normative statement.