When the interest rate is above the equilibrium interest rate there is an :

When the interest rate is above the equilibrium interest rate there is an
 
  A) excess quantity of money and people will sell bonds.
  B) excess demand for money and people will sell bonds.
  C) excess quantity of money and people will buy bonds.
  D) excess demand for money and people will buy bonds.

---

Ques. 2

The magnitude of the slope of the budget line is the ratio of
 
  A) a price to its quantity.
  B) a quantity to its price.
  C) two prices.
  D) two marginal rates of substitution.

---

Ques. 3

Mr. Adams owns a textile business. In order to deal with the principal-agent problem, Mr. Adams might offer his employees
 
  A) incentive pay.
  B) long-term contracts.
  C) part- ownership.
  D) all of the above.

---

Ques. 4

The above figure shows the competitive market for turkey. The producer surplus for the 300 millionth pound of turkey is
 
  A) 1.20 per pound.
  B) 135 million.
  C) 0.30 per pound.
  D) 0.80 per pound.

---

Ques. 5

In the above figure, which of the graphs demonstrates a curve with a decreasing slope, that is, a slope getting smaller in magnitude as x increases?
 
  A) Figure A
  B) Figure B
  C) Figure C
  D) Figure D

---

Ques. 6

The demand for a productive resource, not for its own sake, but for use in the production of goods and services is called a ________.
 
  A) goods and services demand
  B) production demand
  C) derived demand
  D) resource demand