When a market is not in equilibrium:
A. a change in either supply or demand is required to reestablish equilibrium.
B. there is neither excess supply nor excess demand.
C. the economic motives of sellers and buyers will move the market to its equilibrium.
D. government intervention is required to achieve equilibrium.
Answer: C
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Which of the following would have the greatest positive impact on a country's domestic economy?
A) An increase in spending on imports from other countries. B) An increase in spending by foreigners on the country's exports. C) A decrease in the confidence of foreign investors in the country's economy. D) A decrease in the incomes of consumers in foreign countries.
The perfect competition price system is the most efficient because it equates MC = P = MU.
Answer the following statement true (T) or false (F)
Why was running a budget deficit to build the U.S. highway system in the 1950s a benefit to the country?
a. The costs of building the highway system were so small that they were considered irrelevant. b. There were benefits of increasing potential GDP, so the increased costs were not considered. c. The benefits of it increasing potential GDP were greater than the increased costs of borrowing for the deficit. d. The costs of building the highways system were greater than the benefits of building the highway system.
The marginal cost of serving an additional user of a public good is zero
a. True b. False Indicate whether the statement is true or false