The market clearing price is
A) the price which eliminates excess quantity supplied or excess quantity demanded.
B) the price which leaves an excess quantity demanded.
C) the price which leaves an excess quantity supplied.
D) the lowest price at which a positive quantity supplied exists.
Answer: A
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The table above shows the exchange rates between various currencies and the U.S. dollar. Between 2015 and 2016, the U.S. dollar ________ against the Canadian dollar and the Euro ________ against the U.S. dollar
A) appreciated, depreciated B) appreciated, appreciated C) depreciated, appreciated D) depreciated, depreciated
If your income rises by 25 percent and, as a result, you buy fewer packages of Ramen Noodles, then Ramen Noodles are a(n)
A) substitute. B) normal good. C) complement. D) inferior good.
Fine tuning the economy with fiscal policy is:
A. difficult because the government lacks important information about the economy. B. difficult because economists have not developed any theoretical models of the macroeconomy. C. relatively simple because the political process usually works smoothly and without significant lags. D. relatively simple because the government has access to the best information available.
Which of the following is correct?
A. A person who purchases a corporate bond is guaranteed to earn dividends from the stock. B. A person who purchases a corporate bond is borrowing money from a corporation. C. A person who purchases a corporate stock is buying ownership in the corporation. D. A person who purchases a corporate stock gets the option to buy other shares at lower prices.