There is a shortage in a market for a product when
A. demand is less than supply.
B. the current price is lower than the equilibrium price.
C. supply is less than demand.
D. quantity demanded is lower than quantity supplied.
Answer: B
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The defining characteristic of an HMO is:
A. that medical treatment is provided for a fixed annual fee. B. the emphasis on acute medical treatment. C. that medical treatment is provided on a fee-for-service basis. D. that patients have the freedom to see nonmember physicians.
Game theory is a method of analyzing the strategic interaction that occurs between small numbers of
A) people. B) firms. C) countries. D) All of the above are correct.
Assume that both the United States and Germany produce beef and computers. The U.S. can produce 200 computers or 1,000 pounds of beef per day. Germany can produce 500 computers or 250 pounds of beef per day. Graph the PPCs for each country, putting computers on the horizontal axis. Then identify the slopes of the PPCs. What does the slope represent?
What will be an ideal response?
A rightward shift of the AD curve in the very flat part of the short-run AS curve will:
A. increase real output by more than the price level. B. increase the price level by more than real output. C. reduce real output by more than the price level. D. reduce the price level by more than real output.