If price is initially above the equilibrium level
A) the supply curve will shift rightward.
B) the supply curve will shift leftward.
C) excess supply exists.
D) all firms can sell as much as they want.
C
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Prices that adjust nearly on a daily basis are
A) heavy prices. B) sticky prices. C) auction prices. D) custom prices.
Which of the following best illustrates the free rider problem?
A) For every purchase of a $100 season pass, you are entitled to free entry to an amusement park for the entire summer. B) If your neighbors redo the landscapes in their yards, it is likely that the value of your house will increase. C) Since no one owns rhinos and rhinos are valued for their horns, rhinos can be hunted to extinction. D) Homeowners in a small neighborhood decide that security lighting is good for the neighborhood. One homeowner installs the lighting and asks you to contribute toward the cost, but you choose not to contribute.
The figure above shows the market for college education in the United States. The marginal external benefit associated with educating 14 million students is ________ per student per year
A) $16,000 B) $13,000 C) $11,000 D) $5,000 E) $7,000
If the United Auto Workers union can obtain a substantial wage increase for auto workers, there will be a(n):
A. decrease in the supply of automobiles, which is a shift to the right of the supply curve. B. decrease in the supply of automobiles, which is a shift to the left of the supply curve. C. increase in the supply of automobiles, which is a shift to the right of the supply curve. D. increase in the supply of automobiles, which is a shift to the left of the supply curve.