According to the above table, at a price of $8 per unit, other things constant
A. a surplus of 100 units will exist.
B. there will be no tendency for the market to approach an equilibrium.
C. a shortage of 80 units will exist.
D. consumers will continue to bid prices upward.
Answer: A
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If the exchange rate is above equilibrium, there will be ________ in the foreign exchange market
A) a surplus B) a shortage C) a decrease in the demand for domestic currency D) an increase in the demand for domestic currency
In the above figure, the best affordable point is
A) 8 hamburgers and 0 magazines. B) 0 hamburgers and 6 magazines. C) 4 hamburgers and 3 magazines. D) some combination that is not given above.
Monetary policy pushed interest rates to historically low levels during 2002-2004, but was more restrictive during 2005-2006 . Economic analysis indicates that this policy
a. helped to smooth the ups and downs of the business cycle during this era. b. contributed to the boom and bust of the housing market, and thereby the instability of this era. c. contributed to the housing bust of 2002-2004, but helped to restore stability to the housing market in 2006-2008. d. helped to bring inflation under control during 2002-2004, and thereby established a foundation for a strong recovery during 2007-2010
Ken and Traci are two woodworkers who both make tables and chairs. In one month, Ken can make 3 tables or 18 chairs, whereas Traci can make 8 tables or 24 chairs. Given this, we know that the opportunity cost of 1 table is
a. 1/6 chair for Ken and 1/3 chair for Traci. b. 1/6 chair for Ken and 3 chairs for Traci. c. 6 chairs for Ken and 1/3 chair for Traci. d. 6 chairs for Ken and 3 chairs for Traci.