Why do you hold money? According to the classical economists, the only motivation you have for holding money is for

The above figure shows the production possibility frontier for a country. Suppose the country is producing at point D. What is the opportunity cost of increasing the production of rice to 15 tons?

A) 9 thousand bottles of wine B) 12 tons of rice C) 6 thousand bottles of wine D) 15 thousand bottles of wine E) Nothing, it is a free lunch.

If the current price is less than the market clearing or equilibrium price, we would expect:

A) a surplus. B) downward pressure on price. C) upward pressure on price. D) no change in the market price.