We expect the price elasticity of supply to be
A) negative.
B) positive.
C) between -1 and +1.
D) zero.
Answer: B
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Suppose a market is in equilibrium. If a price floor is set in this market below the equilibrium price, it is likely that:
A) quantity demanded will increase. B) a surplus will arise. C) a shortage will arise. D) the quantity sold will rise. E) the market will remain in equilibrium.
Refer to Figure 2.1. If you choose to produce only agricultural products, what is the maximum quantity you can produce per year?
A) 200 tons B) 400 tons C) 600 tons D) > 600 tons
A technological breakthrough that increases the marginal productivity of capital would increase the
a. demand for loanable funds, leading to a lower equilibrium market interest rate b. supply of loanable funds, leading to a lower equilibrium market interest rate c. demand for loanable funds, leading to a higher equilibrium market interest rate d. supply of loanable funds, leading to a higher equilibrium market interest rate e. supply of loanable funds but have no impact on the equilibrium market interest rate
Exports minus imports equals:
(a) NX; (b) GDP; (c) Net exports; (d) a and c are correct.