When quantity supplied equals quantity demanded, there is:
A. disequilibrium.
B. excess quantity supplied.
C. a market-clearing price (equilibrium price).
D. excess quantity demanded.
Answer: C
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A reduction in the rate of inflation is called:
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A. decrease by 10 percent. B. increase by 55 percent. C. increase by 10 percent. D. decrease by 55 percent.
Which of the following is assumed when constructing a production possibilities curve?
A) a fixed amount of resources B) the efficient use of resources C) resources of a given quality D) All of the above are correct.