When the money market is drawn with the value of money on the vertical axis, if money supply and money demand both shift to the right
a. the price level must have risen
b. the price level must have fallen.
c. the price level rises if money supply shifts farther than money demand.
d. the price level falls if money supply shifts farther than money demand.
c
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Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D2 and S2 (point E)
If the technology to produce motorcycles improves and the number of buyers increases, how will the equilibrium point change? A) The equilibrium point will move from E to C. B) The equilibrium point will remain at E. C) The equilibrium point will move from E to B. D) The equilibrium point will move from E to A.
The system we use to measure the value of an economy is called:
A. national income accounting. B. national economic valuation. C. macroeconomic summation. D. national expenditure accounting.
Which resource is not an example of capital?
a. Stocks or bonds b. Machinery c. Equipment d. Physical plants
If price is $5, marginal cost is $5, average total cost is $3, and the quantity produced is 150 units, then the perfectly competitive firm is
A. earning $150 in economic profits and is not maximizing economic profits. B. earning $300 in economic profits and is maximizing economic profits. C. earning $2 in economic profits and is maximizing economic profits. D. not maximizing economic profit.