Which of the following is most likely to result in inflation?
a. Aggregate demand and aggregate supply grow at the same rate.
b. Neither aggregate demand nor aggregate supply grows at all.
c. Aggregate supply grows more rapidly than aggregate demand.
d. Aggregate demand grows more rapidly than aggregate supply.
d
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Suppose that you have noticed that almost all of the car dealers in your city are located along a three-block stretch of the same street. A likely reason for this clustering of car dealers is that:
A. each dealer sells a different brand of car, so they are not competitors and do not have to be concerned about the other dealers' locations. B. the dealers are better able to form a cartel. C. there is a social norm in that city that dealers follow in choosing location. D. each dealer is attempting to locate closest to the customers.
Given the production possibilities schedule in the above table, a combination of 60 televisions and 40 personal computers
A) is attainable but involves an inefficient use of society's resources. B) would be attainable only if a new technology of producing televisions or computers were introduced. C) is not attainable because it is not listed in the schedule. D) is not attainable because society does not have enough resources to produce this combination.
Refer to the above table. There is an excess quantity supplied of 2,000 units at a price of
A. $450. B. $500. C. $600. D. $700.
Who benefits from the process of financial intermediation?
A. both savers and borrowers B. borrowers only C. savers only D. There is no benefit, because money does not create wealth.