If prices are free to rise and fall, and supply and demand cross at a positive price, quantity combination, neither excess demand nor excess supply can persist in a market
a. True
b. False
A
You might also like to view...
Everything else the same, if government expenditure increases by $400 billion and imports increase by $400 billion, then GDP
A) increases by $400 billion. B) increases by $200 billion. C) decreases by $400 billion. D) does not change. E) decreases by $200 billion.
A potential drawback to the big-push strategy in LDCs is that
a. supply bottlenecks may occur that would undermine the all-at-once development process b. there is a problem in choosing which sectors to develop first c. private firms will avoid making the planned investment d. it calls for vast movements of resources, including labor, which may not be possible because people are disinclined to move e. it depends primarily on foreign aid which has proved to be an unreliable source of investment funding
Which of the following institutions is a central bank?
a. the Bank of Japan b. the Bank of England c. the Federal Reserve System d. All of the above are correct.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases. B. increases. C. remains constant. D. decreases.