A market is said to be in disequilibrium if
A) it exhibits either a surplus or a shortage.
B) the number of units that individuals are willing to buy exceeds the number of units they can afford.
C) it is a market for an inferior good.
D) none of the above
A
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To test their theories, economists usually have to
A) set up careful laboratory experiments with all variables controlled. B) first examine theory and what has happened in the past in the real world. C) use only models that have a proven record of success. D) anticipate every factor with 100 percent accuracy.
When a market consists of many small firms, it:
A. cannot be a monopoly. B. must be a perfectly competitive market. C. cannot be a monopolistically competitive market. D. can only be an oligopoly.
Based on the graph showing the effects of a government budget deficit, a budget deficit would ______.
a. increase the demand curve for loanable funds
b. decrease the demand curve for loanable funds
c. increase the supply curve for loanable funds
d. decrease the supply curve for loanable funds
Mathematically, the value of the tax multiplier in terms of the marginal propensity to consume (MPC) is given by the formula:
A. MPC ? 1. B. (MPC ? 1) / MPC. C. 1 / MPC. D. 1 ? [1 / (1 ? MPC)].