Prices tend to increase when there is a situation of shortage in a market
a. True
b. False
Indicate whether the statement is true or false
True
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When the government runs a large deficit,
A) the supply of loanable funds will shift rightward. B) the supply of loanable funds will shift leftward. C) the demand for loanable funds will shift rightward. D) the demand for loanable funds will shift leftward. E) taxes must rise.
Economists such as James Tobin and Paul Samuelson claimed that _________ provided solid evidence of the effectiveness of Keynesian policies
a. increases in deficit spending accompanied by extremely low unemployment during WWII b. increases in taxes accompanied by rising federal budget surpluses c. increases in the money supply accompanied by falling interest rates d. price controls accompanied by inflation
Absolute advantage is the ability to produce:
A. more of a good at a lower cost. B. more of a good than others with a given amount of resources. C. a good or service at a lower opportunity cost than others can. D. relatively more than any other good with a given amount of resources.
We have a futures contract for the purchase of 10,000 bushels of wheat at $3.00 per bushel. If the price of wheat were to increase to $3.50, explain what happens to the parties involved in the contract in terms of marking to market. Be sure to identify who is long and short and specifically how much is transferred.
What will be an ideal response?