If price is below the equilibrium, then quantity supplied will be less than quantity demanded putting upward pressure on price.
Answer the following statement true (T) or false (F)
True
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Tina withdraws $20,000 from her money market account to start up her own house cleaning business. Over that time, the account would have earned 3 percent interest. In order to properly account for all costs of her business, Tina must not forget:
A. the opportunity cost of $2,600. B. the opportunity cost of $600. C. the fixed cost of $20,600. D. the fixed cost of $20,600 and the opportunity cost of $600.
Any change in price along a perfectly inelastic demand curve produces:
a. greater change in the quantity demanded. b. less change in the quantity demanded. c. no change in the quantity demanded. d. infinite change in the quantity demanded.
Which of the following would be most appropriate for the measurement of differences in the average standard of living of people at different points in time?
a. nominal GDP b. real GDP c. nominal GDP per capita d. real GDP per capita
Which of the following is most likely to be a serious obstacle retarding the growth of less-developed nations?
a. a lack of knowledge about modern technology b. a lack of natural resources c. slow population growth d. low capital formation as the result of a weak legal system