In which of the following situations will market clearing price decrease and the equilibrium quantity increase?
A. an increase in demand with no change in supply
B. an increase in supply with no change in demand
C. a decrease in supply with no change in demand
D. a decrease in demand with no change in supply
Answer: B
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Suppose that the equilibrium nominal interest rate is 4 percent and the equilibrium quantity of money is $1 trillion. At any interest rate above 4 percent,
A) less than $1 trillion will be demanded and bond prices will fall. B) more than $1 trillion will be supplied and bond prices will fall. C) there is a shortage of money and the interest rate will rise. D) more than $1 trillion will be supplied and the interest rate will rise. E) less than $1 trillion will be demanded and bond prices will increase.
The wages for Nike workers increases. At the same time, we see the price for Adidas shoes increase. How does this affect the market for Nike shoes?
a. The demand curve will shift to the left; the supply curve will shift to the left b. The demand curve will shift to the left; the supply curve will shift to the right c. The demand curve will shift to the right; the supply curve will shift to the left d. The demand curve will shift to the right; the supply curve will shift to the right
When the EPA dictates the abatement equipment for vehicles, it determines:
A. pollution per mile driven. B. pollution per car per year. C. gasoline mileage per gallon. D. pollution per driver per year.
Animal skins, livestock, tobacco, teeth and rocks have historically served as a medium of exchange, unit of account, store of value and method of deferred payment
Indicate whether the statement is true or false