In a market system, what must take place for quantity demanded to continually be equated with quantity supplied?
A. Businesses must engage in involuntary, unprofitable exchanges to eliminate surpluses or shortages.
B. Tastes and preferences of consumers must adjust to eliminate surpluses or shortages.
C. Relative prices must be able to adjust to market clearing levels.
D. Price controls must be applied by governments.
Answer: C
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One of the most widely followed stock indexes in the United States is the Dow Jones Industrial Average. This index represents
A) the stock prices of 500 large U.S. firms. B) the stock prices of 30 large U.S. corporations. C) the stock prices of more than 4,000 U.S. firms. D) an over-the-counter market.
When a firm acquires another,
A) the acquired firm suffers a winner's curse. B) the acquiring firm may suffer a winner's curse. C) neither firm suffers from a winner's curse. D) a winner's curse only applies if a patent is lost.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
Which of the following will tend to occur when the interest rate increases?
A. The demand for money curve shifts rightward. B. There is a leftward movement along the demand for money curve. C. The demand for money curve shifts leftward. D. There is a rightward movement along the demand for money curve.