Microeconomic Theory Is Based on Supply and Demand

question 23

Multiple Choice

Microeconomic theory is based on supply and demand. Which of the following statements illustrates this?

• A) The demand for nurses in public health is low, but the supply is high.
• B) When few goods or services are available, the price tends to rise.
• C) When supplies are low, nurses must find alternate resources.
• D) In lesser-developed countries, the supplies are often delivered by technologically advanced countries.

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Definitions:

Bank Panics

Occur when a large number of customers withdraw their deposits simultaneously, fearing the bank's insolvency.

Continental Illinois

A notable example of a major bank failure, occurred in the 1980s, which led to significant reforms in banking regulations.

Overdraft Privileges

A banking service that allows a customer to withdraw more money than they have in their account, usually for a fee.

Spanish-Milled Silver Dollar

A widely recognized coin that was minted in the Spanish Empire following the introduction of the mechanical press, becoming an international standard for trade.