Why does equilibrium in the market for a traded good not occur where that country's quantity demanded equals quantity supplied?
a. Because equilibrium occurs where demand equals supply.
b. Because markets are never in equilibrium.
c. Because some of the good is imported or exported.
d. Because there are several demand curves, and the market can't choose between them.
e. All of the above are correct.
c
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Consider the following data for a closed economy:
Y = $12 trillion C = $8 trillion I= $2 trillion G = $2 trillion TR = $2 trillion T = $3 trillion
Use the following graph of the market for milk to answer the question below.
If 30 million gallons of milk are being produced, then we know marginal benefit
A. is less than marginal cost. B. and marginal cost do not depend on the quantity. C. is greater than marginal cost. D. equals marginal cost.
When your budget line is just tangent to your indifference curve, you are at the point on the budget line that you least prefer
Indicate whether the statement is true or false
A transaction between A and B benefits both parties by 50, but imposes a cost on C of 20. C has the right to prevent the transaction. A "coordination failure" in this situation
A) is the cost imposed on C. B) is the ability of C to prevent a transaction that still has a net overall gain of 80. C) would occur if A and B do not compensate C by 20 or more to allow the transaction. D) is that the cost to C is not 100.