Suppose that a mixed open economy is producing at its equilibrium income and that net exports are zero. If at the equilibrium income the public sector's budget shows a surplus:
A. C a + I g + X n + G must exceed GDP.
B. planned investment must exceed saving.
C. a recessionary expenditure gap must exist.
D. saving must exceed planned investment.
B. planned investment must exceed saving.
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Assume a market is in equilibrium. There is an increase in supply, but no change in demand As a result the equilibrium price ________, and the equilibrium quantity ________
A) rises; increases B) rises; decreases C) rises; does not change D) falls; decreases E) falls; increases
Bonds are
A) promises to repay loans. B) promissory notes issued by partnerships. C) promissory notes issued by proprietorships. D) shares of ownership in a corporation.
A normative economist might conclude that
a. a lottery can be conducted in several ways b. certain types of lotteries raise millions of dollars c. a lottery is a bad policy because it burdens the poor d. a lottery is good because it separates people from their money
Refer to Scenario 3.3 below to answer the question(s) that follow.SCENARIO 3.3: -Mustard and mayonnaise are substitutes. -Mustard and relish are complements. -Mustard is a normal good. -During the summer, about 50% of all mustard was recalled by manufacturers and removed from store shelves.Refer to Scenario 3.3. The government wants to protect consumers from rising food prices. Therefore, price restrictions are imposed on mustard producers, prohibiting them from raising the price of mustard. This will cause
A. an excess supply of mustard. B. an excess demand for mustard. C. a decrease in the supply of mustard. D. an increase in the demand for mustard.