When there is a shortage I. there is a tendency for price to increase. II. there is an excess quantity demanded
A) I only
B) II only
C) Both I and II
D) Neither I nor II
C
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Over the last 60 years, the average annual growth of real GDP in the United States has been approximately
a. 1 percent. b. 3 percent. c. 5 percent. d. 9 percent.
In practice, the problems created by time inconsistency and the political business cycle appear to be quite serious
a. True b. False Indicate whether the statement is true or false
Suppose there are two countries that are identical in every way with the following exception. Country A is pursuing a fixed exchange rate regime and country B is pursuing a flexible exchange rate regime. Suppose taxes are increased in both countries rises by the same amount. Given this information, we know that
A) the change in output in A will be greater than in B. B) the change in output in B will be greater than in A. C) the change in output will be the same in both countries. D) the relative output effects are ambiguous.
Which of the following market structures is (are) capable of earning positive economic profits in the long run?
A) monopoly B) oligopoly C) monopolistic competition D) Both A and B.