Suppose that when the price of broccoli is $4 per pound, buyers wish to buy 500 pounds per day and sellers wish to sell 800 pounds per day. In this case:
A. excess supply will lead the price of broccoli to fall.
B. excess demand will lead the price of broccoli to fall.
C. excess demand will lead the price of broccoli to rise.
D. excess supply will lead the price of broccoli to rise.
Answer: A
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The existence of economic fluctuations makes it clear that
a. we should stimulate the economy with tax cuts b. recessions are caused by shifts in labor supply c. we should pass a balanced budget amendment to the U.S. Constitution d. we need active monetary regulation e. the classical model has a flaw
The discount window is a:
A. lending facility that banks can use at specified times to borrow reserves needed to meet reserve requirements. B. term used for when large banks offer a lower interest rate for attracting more borrowers. C. lending facility that allows any bank to borrow reserves from the Fed. D. term used for large banking transactions that are associated with lower risk, and therefore qualify for lower interest rates.
The underlying cause of inflation is
A. labor unions demanding higher wages. B. businesses charging higher prices. C. government raising taxes. D. increasing aggregate demand.
Suppose that you purchased a ticket to a jazz festival for $100 from an online ticket broker. Once you arrived at the festival, you discovered that parking costs you an additional $15. In this situation, the additional $15 you pay for parking is an example of
A. marginal cost. B. an inefficient cost. C. an economic loss. D. opportunity cost.