When is the price of a product demand determined?
What will be an ideal response?
The price of a product is demand determined when the product is in fixed supply. This means that the price of the product is determined solely by the amount that the highest bidder (or bidders) is willing to pay.
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The reversal of fortune is strong evidence against the:
A) religious hypothesis of economic prosperity. B) geography hypothesis of economic prosperity. C) culture hypothesis of economic prosperity. D) institutions hypothesis of economic prosperity.
Which of the following is a reason for using the correlated random effects approach?
A. It provides unbiased and consistent estimators when the idiosyncratic errors are serially correlated. B. It provides unbiased and consistent estimators when the idiosyncratic errors are heteroskedastic. C. It provides a more efficient estimate than the fixed effects approach. D. It provides a way to include time-constant explanatory variables in a fixed effects analysis.
In the long run, an increase in the quantity of money ________ the value of money and ________ the price level
A) raises; does not change B) lowers; does not change C) lowers; lowers D) raises; raises E) lowers; raises
When comparing the annual inflation rate in the United States based on the CPI with the annual inflation rate based on the PCE price index, the data show that the two inflation rates
A) move in opposite directions. B) remained constant over the forty year period after 1979. C) steadily increased over the forty year period after 1979. D) move up and down in similar but not identical ways. E) both fluctuate, but the fluctuations have little relationship to each other.