A shortage exists in a market if
a. there is an excess supply of the good
b. quantity supplied exceeds quantity demanded.
c. the current price is below its equilibrium price.
d. All of the above are correct.
c
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If Jacqueline is willing to accept $1 for a cupcake and Jameson is willing to pay $3 for a cupcake, and they negotiate a price of $2 for a cupcake, the cooperative surplus is
A) $1. B) $2. C) $3. D) $4.
In practice, the Board of Governors and FOMC typically defer to the policy proposals of the:
A) President B) Chair of the Fed C) Secretary of Treasury D) Speaker of the House
Typically, central banks increase the supply of money by ________
A) buying bonds from banks B) printing currency C) directing the government to issue more money to banks D) all of the above E) none of the above
A proportional income tax means that those with a higher income pay
A. a higher percentage of their income in taxes than low-income people. B. the same percentage of their income in taxes as low-income people. C. a lower percentage of their income in taxes than low-income people. D. all the taxes in the economy.