The forces of demand and supply ensure that at equilibrium
A. there are no shortages or surpluses.
B. there are no shortages, but there may be surpluses.
C. there are no surpluses, but there may be shortages.
D. there may be shortages or surpluses.
A. there are no shortages or surpluses.
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If the interest rate is 4 percent, the present value of $10,000 to be received one year from today is about
A) $9,246. B) $9,615. C) $10,816. D) $10,400.
Suppose Mexico can produce 5 autos or 10 corn. Suppose the United States can produce 4 autos or 20 corn. If opportunity costs are constant for both countries, which of the following would NOT be a potential terms of trade?
A) 1 auto for 3 corn B) 1 auto for 4 corn C) 1 corn for 1/3 of an auto D) 1 corn for 1 auto
A perfectly competitive firm has a random demand with a 20 percent chance of being $18 and an 80 percent chance of being $26. What is the firm's expected marginal revenue?
A) $24.40 B) $26.00 C) $18.50 D) $25.60
Improvements in productivity shift the aggregate supply curve outward.
Answer the following statement true (T) or false (F)