When there is a surplus of a product in an unregulated market, there is a tendency for
A. quantity supplied to decrease.
B. price to fall.
C. price to rise.
D. quantity demanded to increase.
Answer: B
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Stagflation occurs when aggregate supply and aggregate demand both increase
Indicate whether the statement is true or false
Utility is:
A. a quantitative measure of consumers’ preferences. B. an objective measure of a person’s happiness. C. as difficult to measure as an individual's income level. D. a meaningful number measuring a consumer’s precise level of satisfaction.
Refer to the accompanying figure. Moving from point C to point B, the opportunity cost of 25 more salads is:
A. 5 pizzas. B. 30 pizzas. C. 10 pizzas. D. 15 pizzas.
Which of the following is expected to increase aggregate demand in the short run?
A. Deficit budget B. Surplus budget C. Zero based budget D. Balanced budget