If the demand for a product increases and the supply of the product does not change, equilibrium price and equilibrium quantity will both increase
Indicate whether the statement is true or false
TRUE
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Does a 21 year old who inherited millions of dollars' worth of corporate stock and who never works supply anyone with productive services?
A) No, by definition. B) Only if her wealth is invested in capital equipment that adds to economic growth. C) Only if others are willing to pay to watch her enjoy life. D) Yes, if she supplies the services of the resources she owns.
In the above figure, if the price is $16 per unit, a profit maximizing perfectly competitive firm will
A) shut down. B) incur an economic loss but continue to operate. C) make zero economic profit. D) make an economic profit.
?Which of the following is a characteristic of a pure command economy?
a. all resources are privately owned
b. economic activity is coordinated by the price system
c. competitive markets guide resources to their highest-valued uses
d. centralized economic planning is used to answer the basic economic questions
e. economic choices are voluntary and are based on rational self-interest
Banks are able to create money:
a) with a printing press. b) by issuing loans. c) by selling bonds. d) by charging interest.