Which of the following occurs when a market is in equilibrium?
A) Quantity supplied is equal to quantity demanded.
B) Supply is equal to demand.
C) The price of the good will tend to rise, all else held constant.
D) The price of the good will tend to fall, all else held constant.
Answer: A
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Assuming there are no capital gains, a nation's wealth at the start of a year is equal to the wealth at the start of the previous year plus
A) income. B) nothing because wealth does not change from one year to the next. C) income minus saving during the year. D) saving during the year. E) saving minus depreciation during the year.
Other things constant, a ________ price ________ quantity demanded
A) higher; increases B) lower; increases C) higher; decreases D) lower; decreases E) both B and C above.
The reason that some people make more money than others is explained mainly by
A. training and education. B. intelligence. C. inborn skills or physical attributes. D. all of the choices/statements are true.
When there is no other way of producing a given level of output with a smaller total value of inputs, the firm is operating at:
a) maximum profit. b) an irrelevant output. c) maximum output. d) minimum cost. e) optimal output.