Suppose that Big-Cat and Fat-Cat are rival cat food brands, and the price of Fat-Cat is reduced. Following this price drop, is there a shortage or a surplus of Big-Cat at the old price of Big-Cat?
a. Neither, a price drop can not cause a shortage or surplus.
b. Neither, equilibrium exists.
c. Shortage.
d. Surplus.
d
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The ratio of the dollar price of a toy in the U.S. to the dollar price of a toy in China represents the ________ between the two currencies
A) nominal exchange rate B) ordinal exchange rate C) expected exchange rate D) real exchange rate
The most common type of simple loan is a(an)
A) automobile loan from a bank. B) mortgage loan from a bank. C) commercial loan from a bank. D) corporate bond.
When demand is elastic, a decrease in price will cause
a. an increase in total revenue. b. a decrease in total revenue. c. no change in total revenue but an increase in quantity demanded. d. no change in total revenue but a decrease in quantity demanded.
If the graph shown is displaying a competitive market and the market is currently offering a wage less than P*:
A. firms will have a hard time finding employees. B. there would be excess workers who want to work at that wage. C. there would be unemployment in the market. D. firms would be forced by government to adjust their wages back to equilibrium.