At any price below the equilibrium price, the quantity demanded exceeds the quantity supplied, and the price tends to rise.
a. true
b. false
Ans: a. true
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According to your authors, America's Great Depression of the 1930s was evidence of
A) an unstable free market system
B) rampant greed among entrepreneurs.
C) a cluster or accumulation of errors.
D) antagonistic interests among the propertied and nonpropertied classes.
E) all of the above.
The major problem facing the economy is high unemployment and weak economic growth. The inflation rate is low and stable. Therefore, the Federal Reserve decides to pursue a policy to increase the rate of economic growth. Which policy changes by the Fed would tend to offset each other in trying to achieve that objective?
A. Selling government securities and raising the discount rate B. Selling government securities and raising the reserve ratio C. Buying government securities and raising the discount rate D. Buying government securities and lowering the reserve ratio
The cash you have in your wallet would be counted in which measure of money?
A. Hard money B. M1 C. M2 D. It would be counted in all of these
Consider a good for which the number of people who benefit from the good is large and the exclusion of any one those people is impossible. In this case, the market for this good will likely
a. be provided by a private firm rather than the government. b. have a free-rider problem. c. not exist. d. be limited to a small number of units of production.