Refer to Figure 3-4. If the price is $25
A) there is a shortage of 300 units. B) there is a shortage of 200 units.
C) there is a surplus of 200 units. D) there is a surplus of 300 units.
D
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Drivers who enter an expressway during the rush hour create negative externalities whenever they
A) could have taken another route. B) drive under the speed limit. C) fail to yield as they merge. D) have no other passengers in their vehicles. E) inadvertently slow down all the drivers behind them.
Consumer equilibrium occurs where the budget line is ____ to the ____ possible indifference curve
a. tangent; highest b. equal; lowest c. marginal; maximum d. differential; highest
The passage of new legislation requiring more extensive government regulation of business will most likely:
A. decrease aggregate demand. B. decrease aggregate supply. C. increase aggregate supply. D. increase aggregate demand.
During the Christmas shopping season, the demand for money increases significantly. To offset the increase in money demand, the Fed must ________ the money supply, which will put ________ pressure on nominal interest rates.
A. decrease; downward B. increase; upward C. decrease; upward D. increase; downward