If the price of a CD is equal to the equilibrium price, there will be ________ of CDs and the price will ________
A) surplus; rise
B) surplus; fall
C) shortage; fall
D) neither a shortage nor surplus; not change
D
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A public good is: a. a good or service for which it is relatively easy to exclude nonpaying customers from consumption. b. a good or service that is consumed by both the paying and nonpaying customers
c. any good or service that is produced by the government. d. a good or service that is consumed by private individuals and financed by private contributions.
Which of the following statements is correct?
a. A decrease of government spending is most effective in the flat part of the SRAS curve. b. An increase in interest rates is most effective in the flat part of the SRAS curve. c. An increase in the money supply is most effective in the steep part of the SRAS curve. d. A tax increase is most effective in the steep part of the SRAS curve.
Which of the following identifies correct reasons for the sustained growth in the Western world post 19th century?
A) Demographic transition and the American civil war B) The American civil war and the Industrial Revolution C) The Agricultural Revolution and the Industrial Revolution D) Demographic transition and the Industrial Revolution
Danny has $12 to spend on two goods: pies and soda. The price of a pie is $4, and the price of a can of soda is $2. To maximize his utility, Danny buys ________
A) the combination that gives him equal total utility from pies and soda B) 2 pies and 2 cans of soda C) only sodas because they are less expensive D) the combination that gives him the same marginal utility per dollar spent on pies as on soda