When quantity supplied is greater than quantity demanded, there
A. is a shortage.
B. is a surplus.
C. may be either a shortage or a surplus.
D. may be neither a shortage or a surplus.
B. is a surplus.
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Because of diminishing returns, an economy can continue to increase real GDP per hour worked only if
A) the per-worker production function shifts downward. B) there is technological change. C) there are decreases in human capital. D) there continue to be decreases in capital per hour worked.
The concept of progressive, proportional, and regressive taxation is positive in nature
a. True b. False
Suppose a monopolist charges a price corresponding to the intersection of the marginal cost and marginal revenue curves. If this price is between its average variable cost and average total cost curves, the firm will:
a. earn an economic profit. b. stay in operation in the short-run, but shut down in the long run if demand remains the same. c. shut down. d. none of these.
To construct GDP, exports:
a. and imports must be subtracted. b. and imports must be included. c. must be included and imports must be ignored. d. must be included and imports must be subtracted.