With respect to the market clearing price and the equilibrium quantity for good X, an increase in the demand for and a decrease in supply of the good definitely will
A) increase the market clearing price and the equilibrium quantity of good X.
B) decrease the market clearing price and the equilibrium quantity of good X.
C) increase the market clearing price of good X but lower the equilibrium quantity of X.
D) increase the market clearing price of good X but have an uncertain impact on the equilibrium quantity of X.
D
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Currency is included in
A) M1 only. B) M2 only. C) neither M1 nor M2. D) both M1 and M2.
In the equation, GDP = C + I + G + X - M, G refers to
A) federal government expenditures plus all transfer payments. B) local, state, and federal government spending for all purposes. C) the taxes and expenditures of all government units. D) local, state, and federal government expenditure on goods and services, but does not include transfer payments.
When voluntary exchange takes place, only one party gains from the exchange
Indicate whether the statement is true or false
The administrators of welfare programs have strong incentives to eliminate poverty
a. True b. False