Consider a market characterized by the following demand and supply conditions: PX = 50 - 5QX and PX = 32 + QX. The equilibrium price and quantity are, respectively,
A. $82 and 50 units.
B. $20 and 6 units.
C. $3 and 35 units.
D. $35 and 3 units.
Answer: D
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Referring to Table 12.2, if the nominal interest rate is 9.5 percent and there is no inflation, which investments will be undertaken?
A) E and D B) E C) C, D, E D) none of the above
If the inflation rate in country A is 3.5% and the inflation rate in country B is 3.0%, we should expect the percentage change in the number of units of country A's currency per unit of country B's currency to be:
A. +16.7%. B. +6.5%. C. +0.5%. D. -0.5%.
Externalities are a type of market failure because:
A.) Buyers do not have complete information about the product. B.) Producers have too much power. C.) Third parties bears the costs or benefits of a market activity. D.) Goods and services are not distributed fairly.
Because government services are not sold in markets,
A. taxes are used to value their contribution. B. the government tries to estimate their market value and uses this to measure the government's contribution to GDP. C. they are valued at their cost of production. D. they are excluded from measurements of GDP.