What happens to the equilibrium price when supply goes down?
A. the price stays the same
B. the prices goes up
C. the price goes up, and then goes down
D. the price goes down
Ans: B. the prices goes up
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The export supply and import demand curves measure the domestic shortage and surplus, respectively, at different world prices
a. True b. False Indicate whether the statement is true or false
A bond that pays a yearly interest rate of $100 is for sale. The interest rate was 10 percent and now is 5 percent. The price of the bond has
A) decreased from $1000 to $500. B) increased from $1000 to $2000. C) decreased from $2000 to $1000. D) increased from $500 to $2000.
Monopolistically competitive industries consist of
a. one firm selling several products b. one firm selling one product c. many firms, all selling identical products d. many firms, each selling a slightly different product e. many firms, each selling a completely different product
In a perfectly competitive capital market, when the firm's marginal revenue product of capital exceeds the market interest rate, the
a. firm is maximizing profit b. firm should increase its quantity demanded of loanable funds c. firm should decrease its quantity demanded of loanable funds d. capital market is in equilibrium e. firm should reduce the rate of interest