During 2008 the supply of gasoline decreased while at the same time the demand for gasoline increased If the magnitude of the increase in demand was greater than the magnitude of the decrease in supply, then the equilibrium price of gasoline ________ and the equilibrium quantity ________.
A) increased; increased
B) increased; decreased
C) increased; did not change
D) decreased; did not change
E) did not change; increased
A
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In a two-nation, two-good world, if country A has the comparative advantage in producing good X over country B, then country A
A. could have the comparative advantage in producing the other good Y as well. B. must have the comparative disadvantage in producing the other good Y. C. should not trade with country B. D. can produce good X with fewer resources than country B.
If the Fed purchases $1 million worth of securities and the required reserve ratio is 8%, by how much will deposits increase (assuming no change in excess reserves or the public's currency holdings)?
A) rise by $1 million B) decline by $1 million C) rise by $8 million D) rise by $12.5 million
Special interest groups are a determent to the political process.
A. True B. False C. Uncertain
Refer to Figure 4-4. At the equilibrium price of $15 consumers are willing to buy 80 pounds of tiger shrimp. Is this an economically efficient quantity?
A) No, the marginal benefit of the 80th unit exceeds the marginal cost of the 80th unit.
B) No, the marginal cost of the 80th unit exceeds the marginal benefit of the 80th unit.
C) Yes, because marginal cost is zero at the 80th unit.
D) Yes, because $15 is the price where the marginal benefit is equal to the marginal cost.