When one market reaches a new equilibrium, the general equilibrium condition has been satisfied.
Answer the following statement true (T) or false (F)
False
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Two teams played a game called Thai 21 on an episode of the television show Survivor. Call the teams Green and Red. The game begins with 21 flags. The teams take turns. When it is a team's turn, it can remove one, two, or three flags
The team that removes the last flag wins. Green goes first. Who should win this game, Green or Red?
A supply curve:
a. has a negative slope. b. is based on the assumption of a stable demand curve. c. illustrates the negative relationship between price and quantity supplied. d. illustrates the positive relationship between price and quantity supplied. e. shifts about in random fashion.
The demand curve for Japanese yen is downward sloping because when the exchange rate (measured in dollars per yen) falls,
a. Japanese goods become relatively cheaper so foreigners buy more of them and need more yen to do so. b. foreigners need more dollars to buy one yen so they can now afford more Japanese goods. c. the yen demand curve shifts to the right as foreigners try to buy more Japanese goods. d. the dollar becomes weaker and this reduces the strength of both economies. e. everyone wants fewer yen because they have lost some of their underlying value.
Assume that markets clear. If in the labor market there is
a. an excess supply of labor, wages will rise b. an excess demand for labor, wages will fall c. an excess demand for labor, wages will rise d. an excess supply of labor, wages stay constant e. a decline in labor demand, wages will rise