A competitive market for a product must be in equilibrium when:
a. Spending on the product is equal to the value of the quantity supplied
b. There is no tendency for the price of the product to change
c. The quantity of the product bought is less than the quantity of the product sold
d. The number of consumers equals the number of producers
Ans: b. There is no tendency for the price of the product to change
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Which of the following statements is CORRECT?
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The more variable a firm's demand, the ________ the loss from uncertainty, which means the firm has ________ to gain from a forecast.
A) smaller; less B) smaller; more C) larger; less D) larger; more
Which of the following statements is correct?
a. About 25 percent of the U.S. population earns an income below the poverty line. b. About 50 percent of blacks earn an income below the poverty line. c. Since 1980 the fraction of persons below the poverty level has risen sharply. d. None of these.
Which of the following statements is not true with regard to automatic stabilizers? a. The most important automatic stabilizer is the tax system
b. They act as shock absorbers to the economy. c. They require legislative action. d. Automatic stabilizers like government transfer payments change as business cycles conditions change.