A market shortage occurs when:
A.) The quantity demanded is less than the quantity supplied at a given price.
B.) The market price is below equilibrium.
C.) Sellers produce a lot of the product and consumers like it a lot.
D.) A new product is introduced at the equilibrium price.
B.) The market price is below equilibrium.
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Protectionism is usually justified on the basis of one of four arguments. What are those four arguments?
What will be an ideal response?
An oligopolist differs from a perfect competitor in that
A) the market demand curve for a perfectly competitive industry is perfectly elastic but it is downward-sloping in an oligopolistic industry. B) there is cutthroat competition in perfect competition but little competition in oligopoly because firms have significant market power. C) there are no entry barriers in perfect competition but there are entry barriers in oligopoly. D) firms in an oligopoly do not produce homogeneous products while firms in perfect competition do.
The expected effects of monetary expansion are
A. lower real interest rates. B. exchange rate depreciation. C. higher inflation. D. All of these responses are correct.
What economic argument suggests that if transactions costs are sufficiently low, the post-bargaining equilibrium is economically efficient regardless of how property rights are distributed?
a. the Coase theorem b. the laws of supply and demand c. the law of comparative advantage d. the law of externalities