The market system corrects a shortage by:
a. Raising product price to decrease production
b. Lowering product price to increase production
c. Raising product price to increase production
d. Lowering product price to decrease production
c. Raising product price to increase production
You might also like to view...
How many dollars do you need to buy a Swedish Kronor (SEK) when the exchange rate is $1 = 6.429 SEK?
a. $0.016 b. $1.056 c. $0.649 d. $0.156 e. $1.56
If the Fed paid a higher interest rate to banks on their reserves at the Fed, excess reserves in the banking system would tend to fall
a. True b. False Indicate whether the statement is true or false
Capital is the
a. flow of new equipment that a firm acquires over the course of a year. b. amount of increase in a firm's equipment over a year. c. amount of money that a firm has on hand at a given time. d. stock of plant, equipment, and other productive resources held by a firm.
Answer the following statements true (T) or false (F)
1. In the foreign exchange market, if Americans significantly increase their investments in securities in British financial markets, one effect is that the dollar will tend to depreciate against the pound. 2. If the organizers of a major sports event set the ticket price above the equilibrium level, then scalping will develop in a secondary market for tickets. 3. The presence of ticket scalpers in popular events like concerts will hurt consumers who buy from the scalpers. 4. In cases where sellers have a fixed number of units of a product to sell, the supply curve will be horizontal. 5. In cases where the supply curve is vertical, any change in demand will cause only a change in price but no change in quantity.