At the market clearing price
A. the supply and demand curves intersect.
B. there is neither a shortage nor a surplus.
C. quantity supplied equals quantity demanded.
D. all of these are correct.
Answer: D
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Suppose we observe a substantial increase in the price of a good, and, at the same time, an increase in the quantity of the good demanded. What can we conclude?
A) The law of supply is untrue. B) Consumers haven't followed the law of demand. C) The demand curve has shifted to the right. D) The good is a luxury good.
Given the following sectoral trade data, in which case is the level of intra-industry trade in country A different from that in country B?
a) In A, X = 10, M = 5; in B, X = 20, M = 10 b) In A, X = 7, M = 3; in B, X = 3, M = 7 c) In A, X = 3, M = 2; in B, X = 6, M = 9 d) In A, X = 6, M = 8; in B, X = 4, M = 3 e) In A, X = 12, M = 9; in B, X = 12, M = 15
Refer to the information provided in Table 23.3 below to answer the question(s) that follow. Table 23.3
Refer to Table 23.3. The equation for the aggregate consumption function is
A. C = 200 + 0.3Y. B. C = -200 + 0.2Y. C. C = 200 + 0.8Y. D. C = 200 + 0.75Y.
Gerald wants to take out an insurance policy on his Pez dispenser collection, and reports to his insurance company that the collection is worth $25,000. This is an example of using money as a
A. medium of exchange. B. unit of account. C. standard of deferred payment. D. store of value.