In financial markets, actual market prices sometimes diverge from the equilibrium price because
A) supply is often greater than demand.
B) demand is often greater than supply.
C) supply is equal to demand.
D) of geographical and temporal fragmentation.
D
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What role do households play in output markets? What role do households play in factor markets?
What will be an ideal response?
The riskiness of an asset is measured by
A) the magnitude of its return. B) the absolute value of any change in the asset's price. C) the standard deviation of its return. D) risk is impossible to measure.
When a country is producing goods and services efficiently it:
A. is producing at a point on or below its production possibilities frontier. B. is getting the most output by using all its available resources. C. has unemployed workers. D. is able to reach a point beyond its production possibilities frontier.
Which of the following headlines is more closely related to what microeconomists study than to what macroeconomists study?
a. Unemployment rate falls from 7.5 percent to 7.3 percent. b. Real GDP falls by 0.4 percent in the third quarter. c. Inflation was 2.4 percent last year. d. The price of gasoline rises due to rising oil prices.