When determining equilibrium using supply and demand, the concept of ceteris paribus is used. The term ceteris paribus means
a. other things being equal.
b. allowing things to change.
c. other things being different.
d. time and space considered.
a. other things being equal.
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Assume the demand for sugar decreases and the supply of sugar increases. Which of the following outcomes is certain to occur?
A. The equilibrium quantity of sugar will rise. B. The equilibrium price of sugar will rise. C. The equilibrium quantity of sugar will fall. D. The equilibrium price of sugar will fall.
If purchasing power parity holds, the exchange rate (e) can be expressed as a function of the domestic price (P) and the foreign price (P*) as
A) e = P - P*. B) e = P* - P. C) e = P* + P. D) e = P/P*.
The most common way for workers to hold market power is when:
A. a monopsony exists. B. they are unionized. C. they compete for minimum wage. D. there are a lot of them.
What type of relationship does expected profitability have with respect to Investment spending?
A. Negative B. Positive C. Indirect D. Constant