An outward shift of the money demand function indicates an increase in the market rate of interest and hence a decrease in the level of investment in the economy
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following best describes Keynes’ argument about the economy?
a. He argued the economy often produced less than its full potential because it was technically impossible to produce more with the existing workers and machines. b. He argued the economy often produced less than its full potential, not because lack of demand in the economy as a whole led to inadequate incentives for firms to produce, but because it was technically impossible to produce more with the existing workers and machines. c. He argued the economy often produced less than its full potential, not because it was technically impossible to produce more with the existing workers and machines, but because a lack of demand in the economy as a whole led to inadequate incentives for firms to produce. d. He argued the economy often produced less than its full potential because it was technically impossible to produce more due to inadequate incentives for firms to produce.
If technology is fixed, monopolization of a competitive industry will lead to
a. lower prices and higher output b. higher prices and the same level of output c. lower output and the same level of price d. higher prices and lower output e. higher output and higher prices
Scarcity is caused by
A. a company's slow production speed. B. shortages. C. an individual's budget that is insufficient to cover the expenses of certain goods or services. D. unlimited wants running up against limited economic resources.
Other things being equal, suppose that the demand for wheat in constant quality units increases. The increase in demand will cause
A. a higher equilibrium price and higher equilibrium quantity of wheat. B. a higher equilibrium quantity, but a lower equilibrium price of wheat. C. a surplus of wheat. D. fall in the market clearing price of corn, a substitute for wheat.