Suppose that a market for a product is in equilibrium at a price of $5 per unit. At any price above $5 per unit
A) there will be an excess demand for the product.
B) there will be a shortage of that product.
C) there will be an excess supply of the product.
D) the quantity supplied of the product will be less than the quantity demanded of that product.
C
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Refer to Figure 19.3. At the exchange rate of 120 yen per dollar, the United States is experiencing a
A) balance of payments deficit. B) balance of payments surplus. C) capital account deficit. D) current account surplus.
When the labor market is in equilibrium, real GDP ________ potential GDP
A) is greater than B) is equal to C) is less than D) might be greater than, less than, or equal to E) is not comparable to
Next year's expected price of oil is $88 per barrel and the interest rate is 10 percent per year. According to the Hotelling Principle the price of oil this year is
A) $80 per barrel. B) $88 per barrel. C) $96 per barrel. D) None of the above answer is correct.
A demand curve is said to be inelastic if:
a. ED = 1 b. ED = 0 c. ED > 1 d. ED < 1