If the actual market price were fixed at $15 per unit in Figure 3.2,
Figure 3.2 Supply and Demand
A. There would be a shortage of 40 units.
B. There would be a shortage of 20 units.
C. There would be a surplus of 20 units.
D. There would be a surplus of 40 units.
Answer: D
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Refer to the information. International trade in this case:
Answer the question on the basis of the following information for a private open economy. The letters Y, C, I g , X, and M stand for GDP, consumption, gross investment, exports, and imports respectively. Figures are in billions of dollars.
A. has an expansionary effect on GDP.
B. has a contractionary effect on GDP.
C. has no effect on GDP.
D. is causing inflation in this economy.
Entry of new firms in a decreasing-cost industry leads to an upward shift of the LRAC curve.
Answer the following statement true (T) or false (F)