Demand for pork (a normal good) will shift to the left if consumer income in China decreases.
a. true
b. false
Answer: a. true
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Everything else held constant, in the market for reserves, when the federal funds rate is 3%, lowering the interest rate paid on excess reserves rate from 2% to 1%
A) lowers the federal funds rate. B) raises the federal funds rate. C) has no effect on the federal funds rate. D) has an indeterminate effect on the federal funds rate.
Saving is necessary for production because
a. more roundabout production is better b. less roundabout production is better c. production takes time d. production is expensive e. production requires labor
For a particular good, a 12 percent increase in price causes a 3 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?
a. There are many substitutes for this good. b. The good is a necessity. c. The market for the good is narrowly defined. d. The relevant time horizon is long.
In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. An improvement in the technology used to produce X will:
A. decrease S, increase P, and decrease Q. B. increase S, decrease P, and increase Q. C. decrease S, increase P, and increase Q. D. decrease D, decrease P, and decrease Q.