Which of the following statements describes a surplus?
a. A surplus is the same as an excess demand.
b. A surplus occurs when the price is above equilibrium price.
c. A surplus occurs when the price is below equilibrium price.
d. A surplus occurs when the quantity demanded exceeds the quantity supplied.
b. A surplus occurs when the price is above equilibrium price.
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The largest share of total production in the United States is
A) government goods and services. B) exported goods and services. C) capital goods. D) consumption goods and services. E) imported goods and services.
Suppose demand can be described with the equation Q = 900?5P and supply with the equation Q = 100 + 5P. Complete the following table. Determine the equilibrium price and quantity. ? Quantity Quantity Surplus/ Price Demanded Supplied Shortage $100 _____ _____ _____ 95 _____ _____ _____ 90 _____ _____ _____ 85 _____ _____ _____ 80 _____ _____ _____ 75 _____ _____ _____ 70 _____ _____ _____ 65 _____ _____ _____ 60 _____ _____ _____ ? ?
What will be an ideal response?
Consider three ways of allocating two goods in a two-person exchange economy. I. Both individuals take prices as given and equilibrium prices are established by an impartial auctioneer. II. One individual can act as a perfect price discriminator and force the other individual to pay a different price for each unit of a good that is traded. III. One individual is a monopolist and can charge the
other individual a single, utility-maximizing price. Which of these situations is efficient? a. None of them. b. Only I. c. I and II, but not III. d. I and III, but not II.
The United States is capable of producing many goods and services that it imports, but it does not because
A. We have lost those skilled workers. B. We can export goods that we specialize in. C. We produce those goods more cheaply if we make them ourselves. D. We can import those goods at a lower opportunity cost than if we make them ourselves.