When quantity demanded equals quantity supplied,
A. there must be no government intervention in the market.
B. the market is in equilibrium.
C. the demand curve must be the same as the supply curve.
D. all of the above
Answer: B
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Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process: Name of CompanyRevenuesCost of Purchased inputsCitrus Growers Inc.$0.750Florida Jam Company$2.00$.75The Corner Store$2.50$2.00What is the value added of The Corner Store?
A. $2.50 B. $2.00 C. $1.75 D. $0.50
A tax
A) places a wedge between the price paid by the buyers and the price received by the sellers. B) reduces consumer surplus and producer surplus. C) decreases government spending. D) Both answers A and B are correct. E) None of the above answers is correct.
According to Friedman's permanent income hypothesis, which of the following statements about transitory income is true?
a. It reflects the unexpected gains of income are transitory income. b. It reflects the income of people who have temporary employment. c. People's consumption depends on transitory income. d. It reflects the income of retired people. e. Habitual losses (or gains) at gambling are transitory income.
To compare the purchasing power of nominal wages in two different years, one must:
A. increase both quantities by the same percentage increase in a price index. B. deflate both quantities by a common price index. C. compare the nominal values. D. adjust both quantities by the real interest rate.