Figure 3.3 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $7, we would expect that:
A. demand will decrease until quantity demanded equals quantity supplied.
B. supply will increase until quantity demanded equals quantity supplied.
C. price will increase until quantity demanded equals quantity supplied.
D. there will be no change in the price since the market is in equilibrium.
Answer: C
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All economically efficient production plans are technologically efficient.
Answer the following statement true (T) or false (F)
Long-term growth in production can be explained by: a. an improvement in the quality of resources available. b. a gradual but consistent rise in the price level
c. a rapid and accelerating increase in the price level. d. a trade surplus that leads to the accumulation of gold. e. the peaks and troughs of economic fluctuations.
If the price of the dollar changes from 100 Japanese yen to 120 Japanese yen, the dollar has depreciated
a. True b. False Indicate whether the statement is true or false
An efficient allocation of risk among employees and owners must:
A. recognize that pooling of risks is never appropriate. B. recognize that employees have full control over their output. C. take into account that performance-based incentives are the sole important component of an employee's salary. D. take into account that attitudes toward risk differ among different people.