Surpluses drive market prices up; shortages drive them down.
Answer the following statement true (T) or false (F)
False
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According to Figure 3.2, the marginal product of labor
a. falls short of the real wage at point b. b. is higher at point a than at point e. c. equals the real wage at point c. d. All of the above e. None of the above.
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Assuming both countries have the same amount of resources available to them, which of the following statements is true? Country A has:
A. an absolute advantage in the production of cars, and Country B has the absolute advantage in the production of trucks.
B. an absolute advantage in the production of trucks, and Country B has the absolute advantage in the production of cars.
C. the absolute advantage in the production of both cars and trucks.
D. the absolute advantage in neither the production of cars nor trucks.
If a check was written on Bank X for $500 and Bank Y presented the check to Bank X for payment, what will happen to the required reserves for each respective bank after payment is made?
A. Bank X's required reserves increase; Bank Y's decrease. B. Both banks will see an increase in their required reserves. C. Bank Y's required reserves increase; Bank X's decrease. D. Both banks will see a decrease in their required reserves.
Suppose the socially optimal output is 134 units of a good and the market output is 95 units of the good. A possible reason the market produces "too little" is that
A. marginal private benefits are less than marginal social benefits. B. marginal private benefits are greater than marginal private costs. C. marginal private benefits are greater than marginal social benefits. D. marginal private costs are greater than marginal private benefits. E. b and c