A price support system that raises price above the normal equilibrium will cause a
A. shift left in demand.
B. decrease in the quantity supplied.
C. shift right in supply.
D. decrease in the quantity demanded.
Answer: D
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Which of the following would not be studied by macroeconomists?
A. The effects of tax cuts on consumer spending. B. Factors affecting average wages in the U.S. economy. C. Inflation in developing countries. D. The worldwide operations of General Motors
Which of the following statements is true?
A) Most of the leading exporting countries are large, high-income countries. B) All sectors of the U.S. economy are affected equally by international trade. C) Each year China exports about 50 percent of its wheat crop and 40 percent of its rice crop. D) Exports benefit trading countries because exports create jobs. Imports do not benefit trading countries because they result in a loss of jobs.
The additional amount a person is willing to pay to obtain a good or resource now rather than later is called the
a. interest rate. b. nominal price of future goods. c. inflationary premium. d. risk premium.
A key characteristic of a competitive market is that
a. government antitrust laws regulate competition. b. producers sell nearly identical products. c. firms minimize total costs. d. firms have price setting power.