Total production
A) always equals total expenditures.
B) equals total expenditures in equilibrium.
C) is always greater than total expenditures.
D) is always less than total expenditures.
B
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Which of the following is a possible impetus for a banking panic?
a. An individual bank fails. b. A large, very important bank fails. c. Congress increases the amount of demand deposits that are protected by insurance. d. Banking rules change to make it harder for banks to make bad loans. e. Changes in the discount rate.
When employers discriminate, they
a. believe they have a sound economic reason for doing so. b. may pay the price in lost earnings and productivity. c. subject themselves to civil action. d. All of the above are correct.
Researchers demonstrate conclusively that drinking 4-6 ounces of ginger ale each day increases life expectancy by 3 years. What happens in the market for ginger ale?
A) The equilibrium price falls, and the equilibrium quantity rises. B) The equilibrium price rises, and the equilibrium quantity falls. C) The equilibrium price and quantity rise. D) The equilibrium price and quantity fall.
An economy suffering from high inflation despite low economic growth and high unemployment is experiencing:
A. an economic boom. B. an economic downturn. C. hyperinflation. D. stagflation.