So long as the actual market price exceeds the equilibrium market price, there will be
A. excess demand.
B. a shortage.
C. upward pressure on the price.
D. downward pressure on the price.
Answer: D
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
Economic growth will be associated with a constant price level when
A) the increase in aggregate demand is accompanied by a reduction in short-run aggregate supply. B) the increase in aggregate demand is less than the increase in long-run aggregate supply. C) the increase in aggregate demand exactly equals the increase in long-run aggregate supply. D) the increase in aggregate demand is more than the increase in long-run aggregate supply.
Owners and managers
A) must be the same people. B) may be different people with different goals, and in the long run firms that do best are those in which the managers are allowed to pursue their own independent goals. C) may be different people with different goals, but in the long run firms that do best are those in which the managers pursue the goals of the owners. D) may be different people with different but exactly complementary goals. E) may be different people with the same goals.
For a monopsonist, the marginal factor cost curve will be above the supply of labor curve. The marginal factor cost curve is above the supply curve because
A) the monopsonist will take advantage of labor and offer them lower wages. B) in order for the monopsonist to sell an additional unit of the good, the price of the good must be lowered. C) in order for the monopsonist to hire more labor the monopsonist must also purchase more capital. D) the monopsonist will have to pay all workers a higher wage rate than the current wage rate if it wants to hire more workers.