The market equilibrium quantity:
A. is sometimes the socially optimal quantity.
B. is the socially optimal quantity.
C. is not the socially optimal quantity.
D. maximizes total economic surplus.
Answer: A
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In the foreign exchange market, what factor leads to a movement along the demand curve for dollars?
What will be an ideal response?
A balance of payments crises under fixed exchange rates occurs when
A) a country runs out of foreign reserves. B) a country is in a liquidity trap. C) exports and imports expand beyond some point. D) marginal returns on foreign exchange investments approach zero. E) forward currency markets undergo high volatility.
The most distinguishing economic feature of money is its
A) medium of exchange role. B) store of value role. C) unit of account role. D) standard of deferred payment role.
Scott receives a producer surplus of $1,000 from selling a baseball bat. If the market price of the bat is $1,500, the minimum price at which Scott was willing to sell the bat is $500
a. True b. False Indicate whether the statement is true or false