A shortage means that:
a. Quantity demanded is greater than the quantity supplied at that price
b. Quantity demanded is less than the quantity supplied at that price
c. Supply of the product is less than the demand
d. Demand for a product is less than the supply
Ans: a. Quantity demanded is greater than the quantity supplied at that price
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The September 11 attacks had the effect of shifting the
A) IS curve to the right. B) IS curve to the left. C) LM curve to the right. D) LM curve to the left.
The two conditions for a valid instrument are
A) corr(Zi, Xi) = 0 and corr(Zi, ui) ≠ 0. B) corr(Zi, Xi) = 0 and corr(Zi, ui) = 0. C) corr(Zi, Xi) ≠ 0 and corr(Zi, ui) = 0. D) corr(Zi, Xi) ≠ 0 and corr(Zi, ui) ≠ 0.
A family of four with one wage earner who earns the minimum hourly wage would be
A. well below the poverty line. B. slightly below the poverty line. C. slightly above the poverty line. D. well above the poverty line.
The effectiveness of direct controls on pollution depends on: (i) the budgets and enthusiasm of the regulatory bodies; (ii) sufficiently strong statutory penalties.
A. i and ii B. i but not ii C. ii but not i D. neither i nor ii