Refer to the information provided in Figure 3.19 below to answer the question(s) that follow.
Figure 3.19Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S1 to S2 and the price of cheeseburgers remains constant at $5.00, there will be
A. an excess demand of 4 cheeseburgers.
B. an excess supply of 3 cheeseburgers.
C. an excess demand of 6 cheeseburgers.
D. an excess supply of 6 cheeseburgers.
Answer: C
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As of October 2012, the amount of money as measured by M2 was about
A) $880 billion. B) $1700 billion. C) $10.2 trillion. D) $14 trillion.
Productive efficiency implies that
A) all consumers' wants are satisfied. B) no advance in technology will occur in the future. C) the attainable region is greater than the unattainable region. D) gains are impossible in one area without losses in another. E) all of the above
The MPC in the economy depicted in Figure 9.3
A. Decreases steadily as disposable income increases. B. Equals 1.0. C. Increases steadily as disposable income increases. D. Is constant.
Which of the following statements is true?
A. Printing too much money usually leads to lower prices. B. Printing currency can be a profitable venture for a government. C. In the modern economy the amount of money created has no effect on prices. D. Printing currency, while necessary, is a losing venture for a government.