If a binding price ceiling were placed in the market in the graph shown:
A. quantity demanded would exceed quantity supplied.
B. quantity supplied would exceed quantity demanded.
C. the demand curve would have to shift.
D. the supply curve would have to shift.
A. quantity demanded would exceed quantity supplied.
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Corporations that offer incentive pay schemes that link pay to meeting profit, production, or sales targets are doing so to cope with the
A) scarcity problem. B) inefficiencies usually found in large firms. C) principal-agent problem. D) problems of unionization.
Refer to Figure 11-5. Curve G approaches curve F because
A) marginal cost is above average variable costs. B) fixed cost falls as capacity rises. C) average fixed cost falls as output rises. D) total cost falls as more and more is produced.
The equilibrium of aggregate supply and aggregate demand represents the:
A. total of all goods and services produced in the major sectors of the economy. B. general price level of the economy with respect to goods and services households purchase. C. overall state of the national economy. D. All of these are true.
If, in response to a decrease in the price of coffee, the quantity of coffee demanded increases, then economists would describe this as
A) an increase in demand. B) an increase in quantity demanded. C) a change in consumer income. D) an increase in consumers' taste for coffee.