When an economy is not in equilibrium,
A) planned expenditures exceed production and income.
B) there is no savings nor investment.
C) government tax revenues equal planned government expenditures.
D) production and income equal planned expenditures.
A
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All but one of the following have been suggested by some economists as possible consequences of path dependency and switching costs. Which of the following is not a possible consequence of path dependency and switching costs?
A) diseconomies of scale B) market failure C) Consumers may get locked into using products with inferior technology. D) Government intervention may be necessary in affected markets in order to improve economic efficiency.
Suppose we were analyzing the pound per Swiss franc foreign exchange market. If Switzerland's central bank intervenes to raise the value of the Swiss franc, then:
a. The supply of Swiss francs in the foreign exchange market rises, and England's monetary base rises. b. The supply of Swiss francs in the foreign exchange market rises, and England's monetary base falls. c. The demand for Swiss francs in the foreign exchange market rises, and England's monetary base rises. d. The demand for Swiss francs in the foreign exchange market rises, and England's monetary base remains unchanged. e. The demand for Swiss francs in the foreign exchange market rises, and England's monetary base falls.