In which of the following situations will both market clearing price and the equilibrium quantity decrease?
A) an increase in demand and no change in supply
B) an increase in supply with no change in demand
C) a decrease in supply with no change in demand
D) a decrease in demand with no change in supply
Answer: D
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Normally an increase in the supply of a good will cause
a. a shift of consumer preferences in favor of that good. b. consumers to use more of that good and less of others. c. a shift of consumer preferences away from that good. d. consumers to use less of that good and more of others.
Which of the following statements is true?
A) Non-bank institutions are also a part of the credit market. B) People who lend money are known as debtors. C) People who borrow money are known as creditors. D) Money that is lent out is considered to be a liability.
Of the following, who gains with a quota?
A) domestic buyers of the good or service B) the importer of the good or service C) the foreign exporter of the good or service D) the government of the importing nation E) the government of the exporting nation
The primary reason the federal budgeting process changed in 1921 was that _____
a. the level of government expenditures were increasing b. the President wanted more power c. federal agencies wanted less responsibility d. World War II forced the military to get involved