If both buyers and sellers expect the price of a commodity to rise in the future, it is likely that equilibrium:
A. price will fall with little change in equilibrium quantity.
B. quantity will fall with little change in equilibrium price.
C. quantity will rise with little change in equilibrium price.
D. price will rise with little change in equilibrium quantity.
Answer: D
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If AC > p where MR = MC
A) firms earn positive profits and new firms will enter. B) firms earn negative profits and existing firms will leave. C) firms earn zero profits and new firms will not enter and no existing firms will leave. D) None of the above.
If an individual or family began at age 25 paying funds into a tax-free investment account or pension earning a 7 percent real return, how much would they have to save annually in order for the funds to be worth a million dollars (measured in the purchasing power of today's dollar) when they reach age 65?
a. approximately $5,000 annually b. approximately $10,000 annually c. approximately $20,000 annually d. approximately $50,000 annually
If central banks could not create money, developing countries:
A. would find it very difficult to finance their current expenditures. B. could not finance any of their expenditures. C. could still finance their expenditures by issuing bonds. D. could still finance their expenditures by simply raising taxes.
An item has utility for a consumer if it
A) is scarce. B) has a high price. C) is something everyone else wants. D) generates enjoyment or satisfaction.