What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up, the price of jelly fell, fewer firms decided to produce peanut butter, and health officials announced that eating peanut butter was good for you?
a. Price will fall, and the effect on quantity is ambiguous.
b. Price will rise, and the effect on quantity is ambiguous.
c. Quantity will fall, and the effect on price is ambiguous.
d. Quantity will rise, and the effect on price is ambiguous.
b
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A game in which players as a group gain at the end of the game is referred to as
A) zero-sum game. B) negative-sum game. C) positive-sum game. D) tit-for-tat game.
The financial system consists of financial ________, such as commercial banks, and financial markets, such as the stock market.
A. allocations B. brokers C. intermediaries D. corporations
If an economy produces 100 pencils valued at $0.25 each and 500 sheets of ruled paper at $0.01 each, using GDP as the measure of output:
A. ruled paper is weighted as being 5 times more important than pencils. B. pencils are weighted as being 5 times more important than ruled paper. C. pencils are weighted as being 25 times more important than ruled paper. D. ruled paper is weighted as being 25 times more important than pencils.
In the long run the real interest rate is determined by ________, and in the short-run the Federal Reserve can control the real interest rate by setting the nominal interest rate if inflation adjusts ________.
A. the Federal Reserve; slowly B. the Federal Reserve; to equal the increase in the money supply C. saving and investment; slowly D. saving and investment; quickly