Suppose you came across the following headline in a story of a daily newspaper: "Automobile prices are so high right now that there must be a shortage. As a consequence not everyone who needs an automobile will be able to buy one
" Is this statement necessarily correct?
First of all we have to conclude that all buyers who wish to buy automobiles at the prevailing prices will be able to do so. There will of course be others who are simply unwilling or unable to pay the current price. Secondly, we cannot say that there is a shortage at the current price. If there were then the price would simply rise to choke off the excess demand.
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Use the following graphs to answer the next question.
The long-run equilibrium for a monopolistically competitive firm is represented by graph
A. A. B. B. C. C. D. D.
According to this Application, the main concern of Greek residents was that
A) the Prime Minister of Greece would be impeached. B) hyperinflation could occur in the economy. C) the country wold switch to a gold standard. D) banks would convert their accounts to drachmas and they would suffer financial losses.
Which of the following is a characteristic of perfect competition?
a. substantial barriers to entry b. differentiated products c. few sellers d. none of the above
Many of the important international governmental institutions that deal with the global economy have their roots in the Bretton Woods conference at the end of World War II
Indicate whether the statement is true or false