Refer to Figure 3-5. In a free market such as that depicted above, a surplus is eliminated by
A) a price decrease, decreasing the supply and increasing the demand.
B) a price increase, increasing the quantity supplied and decreasing the quantity demanded.
C) a price increase, increasing the supply and decreasing the demand.
D) a price decrease, decreasing the quantity supplied and increasing the quantity demanded.
D
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From 1975 to 2008, which of the following countries experienced greater wage increases than the U.S.?
a. Japan b. South Korea c. Taiwan d. all of the above
A society consists of three individuals: Larry, Margaret, and Nina. In terms of income and utility, Larry is currently best-off, Margaret ranks in the middle, and Nina is worst-off. Which of the following statements is correct?
a. Utilitarianism suggests that government policies should strive to maximize the sum of all three individuals' utility. b. Liberalism suggests that government policies should strive to maximize the sum of Larry's utility and Nina's utility. c. Libertarianism suggests that government policies should strive to make Nina better off at the cost of Larry and Margaret. d. Utilitarianism suggests that the government policies should strive to make Nina better off than Margaret.
The most prominent of asset-backed securities is:
A. movie box-office receipts. B. securities backed by home mortgages. C. U.S. Treasury bonds since they are backed by all public assets. D. shares of stock in corporations since stockholders own the assets.
The theory of rational expectations concludes that
A. by reacting to the expected effects of a stabilization policy, the public will tend to negate the impact of that policy. B. the public's expectations as to the effects of economic policies will tend to reinforce the effectiveness of those policies. C. the public's expectations can influence the outcome of fiscal policy, but not of monetary policy. D. the public's expectations can influence the outcome of monetary policy, but not of fiscal policy.