Equilibrium price is the price at which the quantity of a product demanded by consumers and the quantity supplied by producers
a. are different
b. are equal
c. is higher for the product demanded
d. is higher for the product supplied
Ans: b. are equal
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Refer to the figure above. What is the equilibrium quantity after the demand curve shifts to D2?
A) 20 units B) 30 units C) 35 units D) 50 units
Mauritius, an island off the coast of Africa, competes with other countries producing goods with low-skilled labor. In 2006, it was reported that its "...factories have been exposed to ... competition from China, India, and other Asian mass producers." As a result, "the main export industry has seen a 30% reduction in volume..." Suppose real GDP is $14 billion, exports total $2 billion and the multiplier is 4. If exports decline by $600,000,000, real GDP in Mauritius will:
a) increase by $2.4 billion b) decrease by $2.4 billion c) decrease by $8 billion d) increase by $4 billion
Adam Smith
A. wrote The Wealth of Nations. B. said that the entrepreneur is motivated by self-interest. C. coined the term "the invisible hand," which means that the profit motive guides economic resources which effectively promotes the public interest. D. All of the statements about Adam Smith are true.
__________________ is attained when the maximum possible output of any one good is produced, given the output of other goods.
A. Productive efficiency B. Economic growth C. Opportunity cost D. Employment discrimination