In the market for British pounds, if the current exchange rate is above the equilibrium rate,
a. there is an excess supply of pounds and those who hold pounds will be able to sell them and make a profit
b. there is an excess supply of pounds and the exchange rate will fall
c. there is an excess demand for pounds and suppliers will not be able to supply enough pounds to meet the demand
d. there is an excess demand for pounds and the exchange rate will rise
e. the quantity of pounds supplied is barely sufficient to meet the quantity demanded
B
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When the price of a good increases, it
A. leads suppliers to place few goods on the market. B. the demand for the good shifts. C. leads consumers to want to buy more or less than before at a given price. D. a movement down along the demand curve will occur.
Which of the following best describes a good with perfectly elastic supply?
A) Any increase in the price of the good leads to an increase in the seller's revenue. B) Any increase in the price of the good decreases the quantity supplied of the good by more than the price change. C) Any increase in the price of the good will induce the firm to supply an infinite quantity of the good. D) Any increase in the price of the good increases the quantity supplied of the good exactly by the amount of the price change.
Marginal utility:
A) is equal to total utility divided by the number of units consumed. B) is equal to total utility if the demand curve is linear. C) increases as more of a product is consumed. D) diminishes as more of a product is consumed.
The two main approaches to measuring GDP are the
A. income approach and the expenditure approach. B. government approach and the consumer approach. C. flow approach and the stock approach. D. concept approach and the reality approach.