A production possibilities curve illustrates:
A. scarcity.
B. market prices.
C. consumer preferences.
D. the distribution of income.
Answer: A
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When the interest rate on a bond is ________ the equilibrium interest rate, in the bond market there is excess ________ and the interest rate will ________
A) above; demand; rise B) above; demand; fall C) below; supply; fall D) above; supply; rise
Economists believe that political instability can facilitate economic development in an LDC by making its citizens more open to change and new technology
a. True b. False Indicate whether the statement is true or false
A citizen in a developing country with a currency policy of convertibility on the current account could engage in all of the following transactions except:
A. sell foreign currency resulting from the exports of manufactured t-shirts. B. sell foreign currency resulting from the sale of a U.S. treasury bond. C. purchase foreign currency in order to import a BMW. D. purchase foreign currency in order to purchase a U.S. treasury bond.
Use the following graph for a competitive market to answer the question below.
In a market with supply and demand curves as shown above, a price floor of $2.50 will result in
A. a black-market price greater than $2.50. B. a surplus of 10 units. C. a shortage of 10 units. D. no shortage or surplus.