There is a shortage when price is _____ the equilibrium level.
Fill in the blank(s) with the appropriate word(s).
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The figure above shows the costs and demand curves for the Bigshow Cable Company. If the firm is required to set its price according to an average cost pricing rule, the price is ________ and the quantity produced is ________ million
A) $8; 1 B) $6; 1 C) $6; 2 D) $4; 3
If the least wealthy person in a society has millions of dollars, should we still consider that person poor?
What will be an ideal response?
Which of the following correctly describes a foreign exchange market?
a. A place where foreign goods are bought and sold in any country b. A market in which foreign tourists can buy domestic goods c. A global market in which people exchange one currency for another d. A place where contracts to deliver agricultural products across countries are exchanged e. A market where the central banks of different countries exchange government bonds
A year ago a country reduced the tax rate on all interest income from 20% to 10%. During the year private saving was $500 billion as compared to $400 billion the year before the tax reform. Taxes on interest income fell by $10 billion. Assuming no other changes in income, or government revenues or spending, which of the following is correct?
a. the substitution effect was larger than the income effect; national saving rose b. the substitution effect was larger than the income effect; national saving fell c. the income effect was larger than the substitution effect; national saving rose d. the income effect was larger than the substitution effect; national saving fell