A market equilibrium:
A. leaves unexploited opportunities for individuals.
B. is never socially optimal.
C. might not maximize total economic surplus.
D. is socially optimal.
Answer: C
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A stockholder ________ an owner of the firm, and a bondholder ________ an owner of the firm
A) might be; is not B) is; is not C) is not; is D) is not; is not E) is; is
If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 8,000 per year, there is a ________ in the market and the price will ________
A) shortage; rise B) shortage; fall C) surplus; rise D) surplus; fall
From 1975 to 2008, which of the following countries experienced greater wage increases than the U.S.?
a. Japan b. South Korea c. Taiwan d. all of the above
Exhibit 20-5 Money, investment and product markets
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In Exhibit 20-5, a shift in aggregate demand from AD1 to AD2:
A. cannot raise real GDP because the economy is at full employment. B. cannot raise real GDP because the aggregate supply curve is upward sloping at GDP2. C. will raise real GDP because the economy is operating below the full-employment level. D. will cause the interest rate to increase from i2 to i1.