General-equilibrium analysis is the study of
A) how an equilibrium is determined in all markets simultaneously.
B) how an equilibrium is determined in all closely related markets.
C) the effects of a change in a market, and all spillover effects in all related markets.
D) All of the above.
D
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Which of the following would a Keynesian economist be most likely to stress?
a. Supply creates its own demand. b. Businesses will not produce goods and services if they do not think people will buy them. c. You cannot spend your way out of a recession. d. When the unemployment rate is high, wage rates will fall. e. A dollar saved is a dollar earned; a high rate of saving is the key to prosperity.
If the efficient markets hypothesis is correct, then
a. the number of shares of stock offered for sale exceeds the number of shares of stock that people want to buy. b. the stock market is informationally efficient. c. stock prices never follow a random walk. d. All of the above are correct.
Which of the following is the most accurate example of the working of the free market?
a. A government agency orders increased production of wheat bread. b. A CEO increases the production of various sport cars based on the demand for these cars in several small towns. c. The soaring demand of millions of consumers causes numerous companies to increase the supply of HD televisions. d. The increased demand for Choco Bars by people older than 80 causes the manufacturer to increase production slightly.
There are profit opportunities in a thin market because the gap between what a buyer is willing to pay for a true plum and the amount a plum owner is willing to accept is large.
Answer the following statement true (T) or false (F)