At a zero price, which of the following conditions is TRUE for an economic good?
A) Its quantity supplied exceeds its quantity demanded.
B) Its quantity demanded exceeds its quantity supplied.
C) Its quantity demanded equals its quantity supplied.
D) Scarcity disappears.
Answer: B
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Use the Cobb-Douglas production function to explain why even massive movements of labor and capital across national borders may have little impact on differences in per capita income
What will be an ideal response?
If an economy's equilibrium output is $700 and potential gross domestic product is $1,000 . then a recessionary gap of $100 exists in the economy
a. True b. False Indicate whether the statement is true or false
Research by Jonah Rockoff suggests that there is
A. no relationship between teacher performance and student achievements. B. a positive relationship between the number of teachers and class sizes. C. a positive relationship between teacher performance and student achievements. D. no relationship between the number of teachers and class sizes.
A rising price level should shift the expenditure schedule
A. upward and decrease equilibrium real GDP. B. downward and increase equilibrium real GDP. C. downward and decrease equilibrium real GDP. D. upward and increase equilibrium real GDP.