What adjusts to restore general equilibrium after a shock to the economy?
A) The LM curve
B) The IS curve
C) The FE line
D) The labor supply curve
A
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A perfectly competitive firm's marginal revenue
A) may be either greater or less than price, depending on the quantity sold. B) is equal to price. C) is greater than price. D) is less than price because a firm must lower its price to sell more.
According to the concept of scarcity in economics,
(a) wants will be fully satisfied sometime in the future. (b) the wants of society cannot be satisfied by the goods and services that can be produced from given resources. (c) there are no free goods. (d) free goods and scarce goods are equally available. (e) All of the above.
Tasha is undecided about whether to sell her house or not. If the real estate agent comes to her with a $150,000 offer, she will not sell. If the offer is $175,000 . she will sell. Think of Tasha as one of hundreds of would-be sellers on the housing market. It illustrates that
a. the demand for real estate is unreliable b. Tasha's decision making reflects a market-day supply c. there must be an excess supply of homes d. the supply curve for homes is upward sloping e. the supply curve for homes is downward sloping
Because it is a market economy, in the United States all research and development is done by private business firms
a. True b. False Indicate whether the statement is true or false