In a free market, if the price of a good is above the equilibrium price, then;
A. sellers, dissatisfied with growing inventories, will raise their prices.
B. buyers, hoping to ensure they acquire the good, will bid the price lower.
C. sellers, dissatisfied with growing inventories, will lower their prices.
D. the government will set a lower price to reestablish the market equilibrium.
Answer: C
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Which of the following is true of American Depository Receipts (ADRs)? a. ADRs cannot be sold "over the counter." b. Each ADR is backed by a specific number of the issuer's local shares
c. An ADR is a stock that trades in foreign countries but represents a specified number of shares in a U.S. corporation. d. For foreign companies, ADRs are an easy way to purchase raw material from U.S. producers. e. ADRs are issued or sponsored in the United States by the federal government.
International capital flows tend to strengthen the effects of interest rate changes on aggregate demand
a. True b. False Indicate whether the statement is true or false
An effect of international trade is
A) the increase in the average price of goods as the cost of transportation has to be included. B) the transmission of ideas around the world. C) that only countries that have absolute advantage in producing a good can participate. D) that the United States has a trade surplus.
The market demand curve for labor
A) slopes downward. B) slopes upward. C) is vertical at the existing supply of labor. D) is horizontal at the going wage rate.