When there is an excess quantity supplied
A) the market is in equilibrium.
B) quantity demanded is greater than quantity supplied.
C) quantity demanded is less than quantity supplied.
D) prices will remain stable.
C
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Which of the following can create a monopoly? I. high prices II. public franchise III. patent IV. government license
A) I and II B) I and III C) I, II and III D) II, III and IV
Charitable donations to the Red Cross
A) can be explained by the rational ignorance theory. B) can be explained by the rational self-interest theory. C) cannot be explained by the rational self-interest theory. D) prove that there is no scarcity in the United States.
The more elastic the demand curve, the smaller is the deadweight loss resulting from the imposition of a tax
a. True b. False Indicate whether the statement is true or false
Real money demand in the economy is given by L = 0.5Y - 2500i,where Y is real income and i is the nominal interest rate. In equilibrium, real money demand L equals real money supply M/P. Suppose that Y equals 1000 and the real interest rate is 0.02. At what rate of inflation is seignorage maximized?
A. 0.09 B. 0.05 C. 0.10 D. 0.075