When a market is in equilibrium:
A. there is either excess demand or excess supply.
B. there is neither excess demand nor excess supply.
C. both excess demand and excess supply are positive.
D. both excess demand and excess supply are positive and equal to each other.
Answer: B
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Rent seeking activities by special interest groups result in
a. greater economic activity by promoting efficiency in government b. lower economic activity by diverting resources to less-productive or nonproductive uses c. a more equal distribution of income and wealth in the nation d. lower expenditures by government through an increase in taxes e. greater efficiency in the private economy and increased wealth for society
The expected value of a basket with different outcomes is
a. the average of the values of the different outcomes. b. the average of the values of different outcomes multiplied by the average of the probabilities of the outcomes. c. the sum of the values of the different outcomes. d. the sum of the value of each outcome multiplied by its probability.
Which of the following statements is true?
A. A probit or logit model should be used for corner solution outcomes, and a Poisson regression model should be used for a binary response. B. A Poisson regression model should be used for corner solution outcomes, and a probit or logit model should be used for a binary response. C. A probit or logit model should be used for count variables, and a Poisson regression model should be used for a binary response. D. A Poisson regression model should be used for count variables, and a probit or logit model should be used for a binary response.
Choose the letter of the diagram in Figure 3.1 that best describes the type of shift that would occur in each situation for the market listed on the left, ceteris paribus. Figure 3.1 Shifts of Supply and Demand Designer clothes: consumer confidence in the economy improves.
A. A. B. B. C. C. D. D.