Refer to Figure 23-1. At point J in the figure above, which of the following is true?
A) The economy has achieved macroeconomic equilibrium.
B) Actual inventories are less than planned inventories.
C) GDP will be decreasing.
D) Aggregate expenditure is less than GDP.
B
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If the equilibrium price of a good decreases and the equilibrium quantity of the good decreases, we can conclude that
A) demand decreased. B) supply increased. C) demand increased. D) supply decreased.
At the beginning of World War II, a rationing system was established in the United States. Ration stamps or cards were issued for a variety of commodities such as canned milk and gasoline. Canned milk was only available to babies and small children
In this example, canned milk was allocated through A) personal characteristics. B) market price. C) majority rule. D) first-come, first-served.
The problem of moral hazard that resulted from federal deposit insurance can be attributed to all of the following except
A) depositors have little incentive to monitor their bank. B) deposit premiums until recently did not depend on risk. C) risk aversion by managers of banks plus bank examination. D) the incentive of bank stockholders to increase risk because they share disproportionately in success but the FDIC shares disproportionately in failure.
Which of the following best expresses the attitude toward competition of a firm engaged in tacit collusion with its rivals?
a. A rolling stone gathers no moss. b. Waste not, want not. c. Do unto others as you would have them do unto you. d. Ask, and ye shall receive.