The difference between the total amount that people would have been willing to pay for the total quantity produced and consumed in a market and what they actually pay at the market clearing price is called
A) production excess.
B) excess demand.
C) market surplus.
D) consumer surplus.
Answer: D
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The value of the money multiplier depends on
A) the interest rate offered on bonds currently being purchased by the Fed. B) the ratio of total assets to total liabilities for the banking system as a whole. C) the reserve ratio. D) the interest rate offered on bonds currently being sold by the Fed.
What assumption(s) is (are) necessary to generate a kinked demand curve?
a. all firms in the industry ignore the price changes made by any one firm b. any price decrease will be ignored but price increases will be followed c. all firms will follow a price decrease but will ignore any price increase d. all price changes made by any firm will be followed by all of the other firms e. price can increase, but not decrease
The economy's demand for loanable funds is not
a. the same as the economy's supply of capital b. downward sloping c. the sum of all individual firms' demands at every interest rate d. the sum of all the firms' marginal revenue product of capital curves e. a function of the rate of interest
Exhibit 6-14 Cost curves
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In Exhibit 6-14, a firm finds that it is experiencing numerous managerial and information problems. The position of its short- and long-run average total cost curves suggest that it is operating at a production level:
A. between 0 and 1,000. B. between 1,000 and 2,000. C. between 2,000 and 3,000. D. between 3,000 and 4,000.