In a market where the equilibrium price is $7, any price lower than $7 would cause
a. a balanced demand and supply
b. an excess supply
c. an excess demand
d. none of the above
c
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A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule:Production Possibilities ScheduleProductABCDEFSteel012345Wheat100907555300Which of the following output-combinations is unattainable?
A. 4 units of steel and 55 units of wheat B. 95 units of wheat and 0 units of steel C. 30 units of wheat and 3 units of steel D. 1 unit of steel and 80 units of wheat
Explain why Adam Smith believed that competitive markets are a key component of achieving the gains from the invisible hand.
What will be an ideal response?
Which of the following would cause the money demand curve to shift to the left?
A. An increase in interest rates B. Inflation C. A technological advance, like online shopping D. An increase in GDP
Assuming transaction costs are small, the Coase theorem would predict that private parties could arrive at an efficient solution for which of the following problems?
a. One neighbor doesn't mow his lawn. b. One neighbor doesn't paint her house. c. One neighbor comes home on his noisy motorcycle late at night. d. All of the above are correct.