At a market clearing price
A. the quantity demanded will just equal the quantity supplied.
B. there will be a tendency for price to rise over time.
C. there will be an excess quantity demanded.
D. the demand function will shift outward.
Answer: A
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If the purchase and sale of a currently illegal drug (for example, marijuana) were decriminalized, economists would expect
A) an increase in demand and supply of this drug. B) an increase in demand and a decrease in supply of this drug. C) a decrease in demand and an increase in supply of this drug. D) a decrease in demand and supply of this drug.
Based on this consumer surplus graph, how many full glasses of iced tea can Emily buy and receive a consumer surplus?
a. one
b. two
c. three
d. four
The Federal Reserve System (The Fed) is the ________ incarnation of a central bank in the United States
A) first B) second C) third D) fourth
Which of the following would be included in this year's gross domestic product (GDP)?
a. One hundred shares of IBM stock that Tony sold this May b. A used car that Tracey sold to Justin c. George's purchase of a fishing rod and reel at a garage sale d. Sharon giving Dennis $20 as a reward for finding her ring e. A bucket of Kentucky Fried Chicken that Kate bought this July