A surplus of wheat:
A. is impossible if people are hungry.
B. is impossible if the price of wheat is below equilibrium.
C. will result when the quantity demanded exceeds the quantity supplied at the current price.
D. is unlikely to cause any change in the price of wheat.
Answer: B
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Refer to the figure below, expenditures as a percent of GDP fell dramatically in the 1980s.
A. True
B. False
C. Uncertain
If the economy is operating with full employment, which of the following is essentially eliminated?
a. frictional unemployment b. structural unemployment c. cyclical unemployment d. all of the above
If a nondiscriminating imperfectly competitive firm is selling its 100 th unit of output for $35, its marginal revenue:
A. may be either greater or less than $35. B. will also be $35. C. will be less than $35. D. will be greater than $35.
A currency system in which exchange rates are determined in free markets is called a:
A. fixed exchange rate system. B. gold standard. C. flexible exchange rate system. D. All of these