Which of the following statements correctly describes perfectly competitive market equilibrium?
A) There is always excess supply or excess demand when the market is in equilibrium.
B) Multiple equilibriums are possible for a given set of demand and supply curves.
C) Government intervention is necessary for the market to reach equilibrium.
D) Any deviation from equilibrium is automatically restored.
D
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A shortage tends to put ________ pressure on the price of the product, which ________ the quantity demanded
A) upward; increases B) upward; decreases C) downward; increases D) downward; decreases
A main reason why the U.S. trade deficit grew so large from 1997 to 2000 was that
a. Congress removed all tariffs and trade restrictions on imports. b. NAFTA was introduced and Mexican exports flooded the United States. c. the international value of the dollar fell during the 1990s, which encouraged U.S. exports. d. the international value of the dollar rose in the last half of the 1990s, which encouraged U.S. imports and damaged U.S. exports.
Which of the following statements is false?
A) The Dow Jones Industrial Average went down by 40 percent during the decade of the 1930s. B) Based on data from the period between 1926 and 2004, the probability of having a positive return on an investment in the stocks contained in the Dow Jones Industrial Average would have been 97.1 percent if the stocks had been held for 10 years. C) When reading the stock market page of a newspaper, if the column marked "Div." is blank, it means that the company does not currently pay out dividends. D) A stock that yields 4 percent is better than a stock that yields 5 percent, all else being the same.
Which of the following is NOT a normative standard for income distribution?
A. the egalitarian principle B. the productivity standard C. rewarding people according to merit D. All of these are normative standards.