According to the graph shown, producer surplus is:
A. $10.
B. $6.
C. $2.
D. $20.
A. $10.
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
What method of inventory valuation should be used for economic decision-making problems?
a. book value b. original cost c. current replacement cost d. cost or market, whichever is lower e. historical cost
Which of the following best explains why the long-term interest rate will generally change by less than 1% when the short-term interest rate changes by 1%?
A) The mathematical calculations are more difficult for analysts in the case of long-term bonds. B) Long-term rates are always lower than short-term rates, so there is less room for them to change. C) Financial market participants will not expect this increase in the short-term interest rate to persist fully in the future. D) Financial markets are often affected by bubbles and fads. E) none of the above
If quantity demanded is greater than quantity supplied
A. the price will fall. B. the price will rise. C. the market is cleared. D. the price is at equilibrium.