An increase in demand coupled with an increase in supply results in a(n)
a. increase in price and an ambiguous effect on equilibrium quantity
b. increase in equilibrium quantity and a decrease in equilibrium price
c. decrease in equilibrium quantity and an ambiguous effect on equilibrium price
d. increase in economic rent
e. ambiguous effect on equilibrium price and an increase in equilibrium quantity
E
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Explain why economies with financial account surpluses usually have current account deficits
What will be an ideal response?
A firm that sells its output and hires its labor in perfectly competitive markets
a. controls the price of its output, but accepts the wage rate it pays as given b. controls both the price of its output and the wage rate it pays c. controls the rate it pays, but accepts the price of its output as given d. accepts both the price of its output and the wage rate it pays as given e. controls the price of its output, the wage rate it pays, and its own output level
When economists make
a. positive statements, they are speaking not as policy advisers but as scientists. b. positive statements, they are speaking not as scientists but as forecasters. c. normative statements, they are speaking not as policy advisers but as scientists. d. normative statements, they are speaking not as policy advisers but as model-builders.
When the equilibrium dollar price of a foreign currency decreases due to changes in demand for or supply of the foreign currency, the domestic currency
A) has appreciated. B) has depreciated. C) is overvalued. D) is undervalued. E) is revalued.