A market shortage is
A. A situation in which producers cannot sell all the goods and services that they are willing and otherwise able to sell.
B. The result of a price floor.
C. The amount by which the cost of production exceeds the price of a good.
D. The amount by which the quantity demanded exceeds the quantity supplied at a given price.
Answer: D
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If the Lorenz Curve were used to graph the distribution of income in an economy where all households earn the exact same income, the graph would show a _____.
(A) Curved line and sloped diagonally upward. (B) Straight line and sloped diagonally upward. (C) Curved line and sloped diagonally downward. (D) Straight line and sloped diagonally downward.
Suppose banks decide to hold fewer excess reserves relative to deposits. Other things the same, this action will cause the
a. money supply to fall. To reduce the impact of this the Fed could sell Treasury bonds. b. money supply to fall. To reduce the impact of this the Fed could buy Treasury bonds. c. money supply to rise. To reduce the impact of this the Fed could sell Treasury bonds. d. money supply to rise. To reduce the impact of this the Fed could buy Treasury bonds.