The market clearing assumption is
a. a central assumption of the short-run macro model
b. the idea that prices in every market will adjust until quantity supplied and quantity demanded are equal
c. the idea that excess supply always leads to an increase in demand
d. the idea that markets only work when they are in equilibrium
e. believed by most economists today to be an unreasonable assumption
B
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The Arrow impossibility theorem
A) explains why it is impossible, in most cases, to eliminate special-interest legislation after it has become law. B) explains why people can be rational as well as ignorant at the same time. C) explains why candidates for public office must represent the preferences of the political middle. D) explains why voting systems do not consistently represent the preferences of voters.
As of the end of 1994, which of the countries in our survey had the largest proportion of stock held by individuals?
A) The United Kingdom B) The United States C) Japan D) Germany
If consumption of a good creates positive externalities, then
a. private demand is greater than marginal social benefit b. marginal private benefit is less than marginal social benefit c. private cost is less than marginal social cost d. marginal social cost is greater than marginal social benefit e. marginal private cost is zero
The Bureau of Labor Statistics complies two different types of market baskets, to reflect the spending habits of two different types of people:
a. All Urban Workers (CPI-U) and All Farm Workers (CPI-F) b. All Urban Workers (CPI-U) and Urban Low Wage Workers (CPI-LW) c. All Urban Workers (CPI-U) and Urban Wage Earners and Clerical Workers (CPI-W) d. All Urban Workers (CPI-U) and All Rural Workers (CPI-R) e. All Urban Workers (CPI-U) and Urban Service Workers (CPI-S).