A surplus exists in a market if
a. there is an excess demand for the good.
b. quantity demanded exceeds quantity supplied.
c. the current price is above its equilibrium price.
d. All of the above are correct.
c
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In order to survive in political office, politicians must be steadfast in their convictions and be unwilling to change their political platforms
a. True b. False
A utility-maximizing consumer who is considering two goods, x and y, would allocate her budget in such a way that
a. MUx = MUy b. MUx > MUy c. MUx/Px > MUy/Py d. MUx/Px = MUy/Py e. MUx/Px < MUy/Py
Producers play a disproportionately large role in influencing public regulation because they have a strong interest in matters that affect their specialized source of income
a. True b. False
If the data show that periods of high economic growth rate accompanied by high inflation rates, then changes in aggregate demand are the primary source of economic fluctuations
a. True b. False Indicate whether the statement is true or false