Z is a normal good. The equilibrium price and equilibrium quantity of Z in the year 2011 was $25 and 60 units, respectively
It was seen that, in 2014, the equilibrium price of Z had decreased to $15, but the equilibrium quantity had increased to 70 units. Other things remaining the same, which of the following could explain this change?
A) Shift of the supply curve of Z to the left B) Shift of the demand curve for Z to the right
C) Shift of the supply curve of Z to the right D) Shift of the demand curve for Z to the left
C
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Use the following competitive market diagram for product Z to answer the question below.
Assume that the current market demand and supply curves for Z are D1 and S1. If there are substantial external benefits associated with the production of Z, then
A. an output smaller than G would improve resource allocation. B. an output greater than G would result in a more efficient allocation of resources. C. efficient resource allocation occurs at output G and price B because the market mechanism does not measure all benefits. D. the government should levy a per-unit excise tax on Z to shift the demand curve to the left.
A probability distribution with a smaller percentage of its observations beyond a certain distance from the mean will have a higher variance
Indicate whether the statement is true or false
GATT is an example of a successful unilateral approach to achieving free trade
a. True b. False Indicate whether the statement is true or false