Which of the following statements is not correct about a market in equilibrium?
a. The price determines which buyers and which sellers participate in the market.
b. Those buyers who value the good more than the price choose to buy the good.
c. Those sellers whose costs are less than the price choose to produce and sell the good.
d. Consumer surplus will be equal to producer surplus.
d
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Consider a U-shaped long-run average cost curve that has a minimum efficient scale at 6,000 units of output. In this case, this industry would be
A) an oligopoly if the market quantity demanded is 18,000 units. B) perfectly competitive if the market quantity demanded is 20,000 units. C) an oligopoly if the four-firm concentration ratio is more than 10 percent. D) monopolistically competitive if the market quantity demanded is 12,000 units.
A look at the historical data indicates that velocity for M1
A. has been more variable than the velocity for M2, but both have been fairly constant for the past 65 years. B. and M2 have both trended downward, but velocity for M2 has been more erratic than velocity for M1. C. has been fairly constant for the past 65 years, but velocity for M2 has trended downward. D. has trended upward in the past 65 years, but velocity for M2 has been more constant.
Related to the Economics in Practice on p. 6: The opportunity cost to Apple of having the hard drive produced in Japan by Toshiba is
A. the wages paid to Japanese workers. B. the value-added captured by Apple in the United States. C. the components of the hard drive which are not produced by Toshiba. D. having the hard drive produced by the next best available company.
In the ISLM framework, an expansionary fiscal policy causes aggregate output to ________ and the interest rate to ________, everything else held constant
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase