When a shortage exists in a market
A) the market clearing price is above equilibrium and market forces will cause the price to fall.
B) the quantity demanded is less than the quantity supplied at the existing price.
C) the current price is below the market clearing price and the price will rise.
D) the quantity supplied is greater than the quantity demanded at the current price.
C
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When oligopolists secretly cooperate for their mutual benefit they are engaging in
a. inclusion b. collusion c. seclusion d. exclusion e. discrimination
According to the traditional (crowding-out) view, what impact do budget deficits have on the economy?
When economists refer to a firm's capital, they are describing the
a. markets for final goods and services. b. stock of equipment and buildings used in production. c. amount of bank financing used by the firm. d. amount of financing provided by the equity markets.
Supply-side economists contend that the system of taxation in the United States:
A. Creates incentives to save and invest B. Creates dis-incentives to work C. Generates maximum tax revenue D. Reduces the effects of cost-push inflation