The term "shortage" refers to a:
A. situation in which the quantity supplied is less than the quantity demanded.
B. situation in which the quantity demanded is less than the quantity supplied.
C. market in which goods have to be sold quickly or the goods tend to rot or otherwise expire.
D. signal that producers need to decrease the price of the good.
A. situation in which the quantity supplied is less than the quantity demanded.
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The above table has the balance of the University National Bank. All figures are in millions of dollars. The desired reserve ratio is 20 percent. What would be the total increase in loans at this bank if all excess reserves were loaned out?
A) $528 million B) $352 million C) $232 million D) $0
Refer to Scenario 16.3. What is the relative price of tee shirts to candy?
A) $2.25 B) $2 C) $1.40 D) The relative price will be between $2.25 and $1.40. E) It is impossible to determine.
According to the above figure, what will the price level be in the new long-run equilibrium?
A. 110 B. Less than 100 C. 100 D. 115
Refer to the below graph. It shows the supply curve for a product before tax (S0) and after an excise tax is imposed (S1). The excise tax on the product is ultimately paid:
A. By buyers only
B. By sellers only
C. 75 percent by buyers and 25 percent by sellers
D. 25 percent by buyers and 75 percent by sellers