Which of the following is true of the relationship between price and quantity supplied?
a. Whatever the price level, quantity supplied is equal to quantity demanded.
b. More is supplied at lower prices.
c. As the price rises, consumers are willing to purchase more of the good supplied.
d. Except for market-day supply, an increase in price generates an increase in quantity supplied
e. An increase in price leads to a decrease in quantity supplied.
D
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Health insurance was not an important policy issues prior to 1940 because _____
a. less than 10 percent of the U.S. population had health insurance b. health care was so cheap c. of the widespread ability of local charitable hospitals d. most individuals were covered by veteran health benefits
Excess reserves make a bank less vulnerable to runs, but bankers do not like to hold excess reserves because holding excess reserves
a. are disliked by depositors. b. means lower profits for banks. c. are discouraged by government regulators. d. All of the above are correct.
Expansionary fiscal policy leads to higher domestic interest rates.
Answer the following statement true (T) or false (F)
If a market is subject to a positive externality,
A) the demand curve reflecting social benefit will be to the right of the demand curve representing private benefit. B) there is only one demand curve. C) the demand curve reflecting social benefit will be to the left of the demand curve representing private benefit. D) private benefit will exceed social benefit.