When there is overproduction in a market,
A. there is excess quantity demanded.
B. the total of consumer and producer surplus is maximized.
C. market price is too low.
D. there is a deadweight loss.
Answer: D
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John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the table below:Hours PerDay CleaningWindowsTotal Numberof WindowsCleaned0017211314416517What is the lowest price per window that John would be willing to accept to spend 4 hours per day cleaning windows?
A. $2 B. $11 C. $3.50 D. $7
The strategic argument for protectionism holds that a nation may sometimes have to threaten protectionism to induce other countries to drop their own protectionist measures.
Answer the following statement true (T) or false (F)
Which of the following rises during a recession?
A) Gross Domestic Product B) Investment C) Unemployment D) Consumption
Why is it necessary for all economic systems to not only provide people with goods and services, but also restrict them from getting as much of these goods and services as they wish?
A) Failure to do this could reduce the efficiency of the system by producing some goods and services that are not as highly valued as others. B) Failure to do this could lead to an inequitable allocation of goods and services produced. C) Failure to do this will lead to drastic shortages of all goods and services. D) Failure to do this could reduce efficiency and lead to an inequitable allocation of output.