When the price is below the equilibrium price, the quantity demanded
A) is less than the equilibrium quantity and the quantity supplied also is less than the equilibrium quantity.
B) is less than the equilibrium quantity but the quantity supplied exceeds the equilibrium quantity.
C) exceeds the equilibrium quantity and the quantity supplied also exceeds the equilibrium quantity.
D) exceeds the equilibrium quantity but the quantity supplied is less than the equilibrium quantity.
D
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As the market wage increases:
a. the income effect normally influences you to work more. b. the income effect normally influences you to work less. c. the substitution effect normally influences you to work less. d. the substitution effect normally influences you to involve in nonmarket work.
Suppose that Canada can produce 15 units of timber or 3 units of grain. Suppose that Mexico can produce 6 units of timber or 2 units of grain. Which of the following is CORRECT?
A) Mexico has a comparative advantage in grain production. B) Mexico has an absolute advantage in timber production. C) Canada has a comparative advantage in grain production. D) The countries would find trade mutually beneficial at a trading ratio of 1 grain for 2 timber.
Which of the following statements best describes the reaction of the private sector to government budget deficits and surpluses?
a. In practice, the private sector only sometimes adjusts its savings behavior to offset government budget deficits and surpluses. b. In practice, the private sector only partially adjusts its savings behavior to offset government budget deficits and surpluses. c. In practice, the private sector only sometimes and partially adjusts its savings behavior to offset government budget deficits and surpluses. d. In practice, the private sector does not adjust its savings behavior to offset government budget deficits and surpluses.
Jason works in finance at an MNE. Part of his job is to invest large sums of money in various markets. His latest transaction was investing $10,000 in British pounds for 120 days, then taking the British pounds and investing them in euros for 90 days, and then converting it all back to U.S. dollars. Jason is most likely participating in ________.
A) interest arbitrage B) speculation C) cryptocurrency D) options