Use the following statements to answer this question: I. The income-consumption curve for perfect complements is a straight line. II. The price-consumption curve for perfect complements is a straight line
A) I and II are true.
B) I is true and II is false.
C) II is true and I is false.
D) I and II are false.
A
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When shortages or surpluses persist for any extended period of time, they
A) are a consequence of failure to allow prices to perform their rationing function. B) are evidence of an underlying imbalance between demand and supply. C) are evidence of goods being scarce. D) indicate that there is no price that will clear the market in the case of some goods.
Using the ISLM model, explain the effects of a monetary expansion combined with a fiscal contraction. How do the equilibrium level of output and interest rate change?
What will be an ideal response?
In short-run competitive equilibrium, which of the following is always true? a. Profit equals zero
b. Profit can be negative, zero, or positive. c. Profit can be zero or positive, but not negative. d. Profit is positive, otherwise firms would not produce.
The first checks were probably notes written to a goldsmith asking him to transfer ownership of some designated amount of gold from the writer of the note to its bearer
a. True b. False Indicate whether the statement is true or false