When a market is in equilibrium:
a. there is a downward pressure on the price.
b. quantity demanded is equal to quantity supplied.
c. there is excess supply in the market.
d. quantity demanded exceeds quantity supplied.
b
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What is the relationship between a perfectly competitive firm's marginal cost curve and its short-run supply curve?
What will be an ideal response?
During the 2007-2009 recession and its aftermath, Okun's law
A) predicted the cyclical unemployment rate more accurately than it did prior to the recession. B) predicted the cyclical unemployment rate at roughly the same rate of accuracy as it did prior to the recession. C) predicted a higher cyclical unemployment rate than was actually experienced in the U.S. economy. D) predicted a lower cyclical unemployment rate than was actually experienced in the U.S. economy.
Neo-Keynesians believe that the market power exercised by unions, monopolies, and particular resource suppliers created the Phillips curve
Indicate whether the statement is true or false
Hotelling's model has been used to describe differentiation in the political "market." Suppose that 100 voters are evenly distributed between the extreme left and the extreme right on the political spectrum, and that all voters vote, and they always vote for the candidate closest to them on this spectrum. The numbers on this spectrum represent the number of voters lying to the left of the number. So, at the midpoint, fifty voters lie to the left and fifty to the right.
Suppose Candidate X is running against Candidate Y. If Candidate Z enters the race:
A. most of the voters who were going to vote for Y will now vote for Z. B. approximately half of the voters who were going to vote for X will now vote for Z. C. X will win because Y and Z will be competing for the same voters. D. all of the voters who were going to vote for Y will now vote for Z.