Suppose that the interest rate is greater than the equilibrium interest rate. Which of the following occurs?
I. There is an excess quantity of money.
II. The quantity of money automatically increases.
III. The interest rate falls.
A) I
B) I and II
C) I and III
D) I, II and III
C
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The labor demand curve of an imperfectly competitive seller is downward sloping
A. solely because of diminishing marginal utility. B. solely because of diminishing returns. C. because of both diminishing returns and the necessity to lower price to sell more output. D. solely because product price must be reduced to sell more output.
Demonstrating how an economic variable changes from one year to the next is best illustrated by a
A) time-series graph. B) scatter diagram. C) Venn diagram. D) linear graph. E) cross-section graph.
China exports toys to the United States; in a closed economy China must have a domestic price that is ________ the world price of toys.
A. close to B. equal to C. less than D. greater than
Microeconomics is best described as the study of:
A. the choices made by individual households, firms, and governments. B. inflation, unemployment, gross national product, and the nation's economy as a whole. C. how markets interact in the aggregate economy. D. marginal changes in the economy.