At a product's equilibrium price
A) anyone who needs the product will be able to buy the product, regardless of ability to pay.
B) not all sellers who are willing to accept the price will find buyers for their products.
C) the federal government will provide the product to anyone who cannot afford it.
D) any buyer who is willing and able to pay the price will find a seller for the product.
D
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Which of the following is not considered to be a shadow bank?
A. Money-market mutual funds B. Insurers C. Credit unions D. Brokerages
Suppose that the price of product X rises by 20 percent and the quantity supplied of X increases by 15 percent. The coefficient of price elasticity of supply for good X is:
A. negative and therefore X is an inferior good. B. positive and therefore X is a normal good. C. less than 1 and therefore supply is inelastic. D. more than 1 and therefore supply is elastic.
A small country with a marginal propensity to save of 0.30 and a marginal propensity to import of 0.20 experiences an increase in exogenous spending of $3 million.a. According to the spending multiplier, by how much will domestic product and income change?b. What is the change in the country's imports?c. If this country is large (rather than small), what effect will this have on foreign product and income? Explain.d. Will the change in foreign product and income tend to counteract or reinforce the change in the first country's domestic product and income? Explain.
What will be an ideal response?
Refer to the information provided in Figure 4.5 below to answer the question(s) that follow.
Figure 4.5Refer to Figure 4.5. If the United States eliminates all tariffs on CD-Rom drives, which of the following would occur?
A. The price of CD-Rom drives in the United States would be $15 per CD-Rom drive, and the United States would import 9 million CD-Rom drives. B. The price of CD-Rom drives in the United States would be $15 per CD-Rom drive, and the United States would import 3 million CD-Rom drives. C. The price of CD-Rom drives in the United States would be $25 per CD-Rom drive, and the United States would import 3 million CD-Rom drives. D. The price of CD-Rom drives in the United States after the U.S. government eliminated all tariffs on imported CD-Rom drives cannot be determined from this information.