When there is an excess demand of a product in an unregulated market, the tendency is for
A. price to rise.
B. price to decrease.
C. quantity demanded to increase.
D. quantity supplied to decrease.
Answer: A
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Sophie is willing to sell her soccer ball for $10. Ruby is willing to pay $20 for the soccer ball. Sophie and Ruby agree on a price of $16. The gains from trade for Sophie equals ________ and the gains from trade for Ruby equals ________.
A. $5, $5 B. $6, $4 C. $10, $20 D. $4, $6
Which of the following are TRUE regarding the argument that trade barriers protect U.S. workers from cheap foreign labor? I. Low-wage foreigners are just as productive as U.S. workers. II. U.S. workers have a comparative advantage in low-wage jobs
A) I only B) II only C) I and II D) Neither I nor II is correct.
If you have a mortgage on your house at 6 percent and the inflation rate when the mortgage was acquired was 3 percent but has since increased and is now 8 percent per year; the current real interest rate is
A) -2 percent per year. B) 8 percent per year. C) 6 percent per year. D) 0 percent per year. E) 14 percent per year.
A graph that shows the percentage of the families on one axis and the percentage of income on the other is called the:
a. Budget-distribution curve. b. Income-consumption curve. c. Lorenz curve. d. Marx curve.