Consider a market that is in equilibrium. If it experiences both a decrease in demand and an increase in supply, what can be said of the new equilibrium? The equilibrium:
A. price and quantity will both rise.
B. quantity will definitely fall, while the equilibrium price cannot be predicted.
C. price will definitely fall, while the equilibrium quantity cannot be predicted.
D. price and quantity will both fall.
C. price will definitely fall, while the equilibrium quantity cannot be predicted.
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A stock mutual fund's primary advantage is to allow
A) investors to diversify away systematic risk. B) investors to diversify away all risk. C) investors to diversify away idiosyncratic risk. D) the rich to avoid taxes.
If the quantity of money demanded is less than the quantity supplied at a given interest rate, what will happen to restore the market to equilibrium?
a. The public will try to buy bonds, the price of bonds will increase, and the interest rate will fall until the equilibrium is attained where the money demand and supply curves intersect. b. The public will try to sell bonds, the price of bonds will decrease, and the interest rate will rise until equilibrium is attained where the money demand and supply curves intersect. c. The public will try to sell bonds, the price of bonds will increase, and the interest rate will fall until equilibrium is attained where the money demand and supply curves intersect. d. The public will try to buy bonds, the price of bonds will increase, and the interest rate will rise until equilibrium is attained where the money demand and supply curves intersect. e. The public will try to buy bonds, the price of bonds will decrease, and the interest rate will fall until equilibrium is attained where the money demand and supply curves intersect.
Economists perceive a college applicant's grade point average and standardized test scores (such as SAT and ACT scores) to be rationing devices
Indicate whether the statement is true or false
Refer to Figure 3.4. What is the marginal cost of the 15th hour spent on this activity?
A. $80
B. $5.33
C. $2.66
D. $4.00