If there is a shortage in the market for athletic shoes,
a. the price should rise to eliminate the shortage
b. inventories of athletic shoes will grow
c. demand will decrease to restore equilibrium
d. firms will reduce production to restore equilibrium
e. supply will increase to restore equilibrium
A
You might also like to view...
A merger between U.S. Steel and General Motors would be an example of a
A) conspiracy in restraint of trade. B) horizontal merger. C) conglomerate merger. D) vertical merger.
The real value of any variable is its nominal value:
A. adjusted for inflation. B. holding the base constant. C. holding the basket constant. D. adjusting for income.
Suppose fairness is defined as those with the highest incomes can afford to pay a greater proportion of their income in taxes. Then which of the following taxation systems would be consistent with this notion of fairness?
A. A true flax tax. B. A flat sales tax on consumption purchases. C. A progressive tax on income. D. A fixed federal tax of $5,000 that everyone pays regardless of income status.
Adherents of the traditional monetary rule say that the supply of money should be:
A. increased at a constant rate each year. B. decreased during recession and increased during inflation. C. held constant over time. D. increased during recession and decreased during inflation.