In which of the following situations will both market clearing price and the equilibrium quantity decrease?
A. an increase in demand and no change in supply
B. an increase in supply with no change in demand
C. a decrease in supply with no change in demand
D. a decrease in demand with no change in supply
Answer: D
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The recession phase of the business cycle is typically associated with higher ________ and lower ________.
A. income; real GDP B. employment; income C. real GDP; unemployment D. unemployment; output
Market systems can be evaluated as efficient or inefficient, but not as fair or unfair.
Answer the following statement true (T) or false (F)
In the classical model, when an open economy has balanced trade, Say's law does not hold
a. True b. False
Which of the following is an example of a barrier to entry? (i) A key resource is owned by a single firm. (ii) The costs of production make a single producer more efficient than a large number of producers. (iii) The government has given the existing monopolist the exclusive right to produce the good
a. (i) and (ii) only b. (ii) and (iii) only c. (i) only d. (i), (ii), and (iii)