When a surplus of rice occurs,
A) the price of rice rises.
B) the price of rice falls.
C) there is a balance between the forces of supply and demand.
D) the quantity demanded is greater than quantity supplied at the current price.
E) the demand curve shifts rightward and the supply curve shifts leftward to eliminate the surplus.
B
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Modern economists measure how much utility Fred gets from a hot dog by
A. asking Fred how many utils he gets from its consumption. B. examining the price of the hamburger Fred chose not to buy. C. asking Fred how much of some other good he would give up to get the hot dog. The “other good” can be any good except money. D. asking Fred how much of some other good he would give up to get the hot dog. The “other good” can be any good, including money.
Next year's expected price of oil is $90 per barrel. If the interest rate climbs from 5 percent to 20 percent per year and nothing else changes, then according to the Hotelling Principle the price of oil this year
A) will rise. B) will fall. C) will not change. D) could rise, fall, or stay the same.
Under the Sarbanes-Oxley Act of 2002, the provision that gives more funding to the SEC is an example of
A) regulate for transparency. B) supervisory oversight. C) separation of functions. D) socialization of information production.
Nonactivists hold that
A) activist monetary policies are likely to be destabilizing rather than stabilizing. B) economic fine-tuning is quite feasible. C) flexibility in wages and prices is sufficient to allow the economy to return at a reasonable speed to full-employment output. D) a and c E) all of the above