Consider a market that is in equilibrium. If it experiences an increase in demand, what will happen? The demand curve will shift to the:
A. right, and the equilibrium price and quantity will fall.
B. right, and the equilibrium price and quantity will rise.
C. left, and the equilibrium price and quantity will fall.
D. right, and the equilibrium price will increase and the equilibrium quantity will decrease.
Answer: B
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A physician's knowledge and skills are referred to by economists as
a. human capital b. labor c. physical capital d. entrepreneurship e. intellectual raw materials
Under the Term Auction Facility (TAF), the rate that a depository institution pays on a loan from the Fed is determined by
a. the federal funds rate. b. the discount rate. c. the real rate of interest. d. a bidding process allocating the funds to those willing to pay the highest rates.
In 2014, a farmer grows and sells $3 million worth of corn to Big Flakes Cereal Company. Big Flakes Cereal Company produces $8 million worth of cereal in 2014, with sales to households during the year of $7 million. The unsold $1 million worth of cereal remains in Big Flake Cereal Company's inventory at the end of 2014 . The transactions just described contribute how much to GDP for 2014?
a. $3 million b. $7 million c. $8 million d. $11 million
Despite its status as one of the richest countries in the world, Japan
a. has a very low level of productivity. b. has few natural resources. c. has very little human capital. d. engages in a relatively small amount of international trade.