To maintain a price below the equilibrium price,
a. demand must increase.
b. supply must increase.
c. the government must set a ceiling price.
d. supply must decrease.
c. the government must set a ceiling price.
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All of the following are non-price determinants of supply except
A) costs. B) technology. C) income. D) future expectations.
?Beginning from full-employment macro equilibrium, increase in government spending will cause real GDP to:
A. ?increase in the short run. B. ?decline in the long run. C. ?decline in the short run. D. ? increase in the long run.
"A country can be worse off as a result of free trade in an exported product if there are no policies that force market decision-makers to internalize the external costs associated with the domestic production of this product." Do you agree or disagree with the statement? Illustrate your answer with the help of relevant diagrams.
What will be an ideal response?
What is meant by comparative? statics? Explain with an example.
A. A change in an outcome, such as consumption, that results from a change in a factor, such as the price. B. The effect of the best feasible choice, such as consumption, on its marginal cost. C. Changes in net benefits when a person switches from one alternative, such as consumption, to another, such as no consumption. D. Equilibria across multiple? markets, such as labor? markets, financial? markets, and service markets.