Figure 4.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $15, there is an:
A. excess demand of 8 t-shirts.
B. excess supply of 8 t-shirts.
C. excess demand of 10 t-shirts.
D. excess supply of 10 t-shirts.
Answer: B
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A researcher claims that the slow economic growth of countries located in Africa can be attributed to the geography hypothesis. If the researcher is correct, it implies that economic growth of countries in Africa is greatly affected by:
A) institutional factors such as the availability of credit and finance. B) natural factors such as climate and quality of soil available. C) cultural factors such as work nature of indigenous residents. D) religious factors.
Active fiscal policy is the main tool used by the Fed for economic stabilization
Indicate whether the statement is true or false
"If it were not for the law of diminishing marginal returns, the world's wheat could be grown in a flower pot." Explain
Exhibit 7-1 Consumer Price Index Year ConsumerPrice Index 1 100 2 110 3 115 4 120 5 125 As shown in Exhibit 7-1, the rate of inflation for Year 5 is:
A. 4.2 percent B. 5 percent. C. 20 percent. D. 25 percent.