Equilibrium in a market occurs when
A) demand and supply indicate a small surplus of a good.
B) price is at its minimum.
C) quantity supplied and quantity demanded are equal at the market clearing price.
D) the market price leads to a decrease in quantity demanded.
C
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The long-run exit rule is to exit the industry if:
A. P > AVC. B. P < AVC. C. P < ATC. D. P > ATC.
When a country allows trade and becomes an exporter of a good,
a. the gains of the domestic producers of the good exceed the losses of the domestic consumers of the good. b. the gains of the domestic consumers of the good exceed the losses of the domestic producers of the good. c. the losses of the domestic producers of the good exceed the gains of the domestic consumers of the good. d. the losses of the domestic consumers of the good exceed the gains of the domestic producers of the good.
If the discount rate is lowered, banks borrow
a. less from the Fed so reserves increase. b. less from the Fed so reserves decrease. c. more from the Fed so reserves increase. d. more from the Fed so reserves decrease.
Deflating a nominal quantity is the process of dividing a ________ quantity by a ________ in order to express the quantity in ________ terms.
A. real; nominal quantity; real B. nominal; price index; real C. real; price index; nominal D. nominal; real quantity; nominal