Suppose, with a given supply and demand curve, the market for guitars would clear at $500, but the current price of guitars is $700. Given the above information,
A) there is a shortage of guitars.
B) there is a surplus of guitars.
C) the market for guitars is fully coordinated.
D) the quantity of guitars supplied equals the quantity demanded.
B
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State and briefly explain whether or not the empirical evidence generally supports the belief that there is a fixed trade-off between unemployment and inflation, such that monetary policymakers can achieve the combination they prefer
What will be an ideal response?
Which of the following is true regarding tacit collusion?
A) It is an informal, unstated agreement. B) It is illegal. C) It is more likely to occur when the price elasticity of demand is large. D) It is more likely to occur when barriers to entry are low.
Under the gold standard:
A) the United States set the price of gold at $35 per ounce, and other countries then established their exchange rates against the U.S. dollar (e.g., £1 = $5). B) Great Britain and the United States set the price of gold at $35 per ounce and £7 per ounce, and then other countries established their exchange rates against either the British pound or the U.S. dollar. C) all countries pegged the values of their currencies to gold. D) only gold was used to settle international transactions.
Fairness, according to behavioral economics:
A. is too subjective to be considered in the analysis of economic behavior. B. can be objectively standardized across individuals. C. varies from one individual to another but still affects economic behavior in important ways. D. matters to people, but because of self-interest fairness has little effect on their economic decisions.