If demand for a good increases and supply remains constant equilibrium price:
a. Will increase, and equilibrium quantity will decrease
b. And quantity will both increase
c. And quantity will both decrease
d. Will decrease, and equilibrium quantity will increase
b. And quantity will both increase
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Information asymmetries may make it difficult for important sectors of the economy to receive the funding they need to keep the economy growing. In many economies, this problem is addressed with ________
A) prudential regulation B) government-directed credit C) government-backed deposit insurance D) adverse selection
Economic theory predicts that a profit maximizing car rental agency with some market power would set its prices in what way?
a. Charge the same for both weekday and weekend rentals. b. Charge more for weekend rentals and less for weekday rentals. c. Charge more for rentals during the week and less for weekend rentals.
The Herfindahl-Hirschman Index is the sum of the
A. Market shares of the top four firms in the market. B. Squared concentration ratios for the firms in the market. C. Squared market shares of the firms in the market. D. Market shares of all the firms in the market.
Which one of the following is an example of discretionary fiscal policy used to correct an inflationary gap?
A. an agreement among major banks to lower interest rates B. decrease in the money supply by the Federal Reserve C. an increase in government expenditures approved by Congress D. a tax increase passed into law by Congress