A shortage will occur if:
A. the quantity being supplied at a given price exceeds the quantity demanded at that price.
B. the quantity being supplied at a given price is less than the quantity demanded at that price.
C. there are not enough buyers in the market.
D. there are only inexperienced firms in the market.
Answer: B
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Households increase the quantity of labor supplied when the
A) real wage rate rises because the opportunity cost of not working rises. B) income tax rises because an increase in the income tax increases the demand for labor. C) nominal wage rate falls because the opportunity cost of not working rises. D) nominal wage rate rises because the real wage rate must also rise. E) real wage rate rises because the opportunity cost of not working falls.
What is the motivation behind the cost-control features of managed care?
a. To ensure access to specialty care through general practitioner gatekeepers. b. To influence the way physicians practice medicine by changing the financial incentive structure of medical care delivery. c. to shift the financial risk onto patients. d. to eliminate all the guesswork from diagnoses by establishing practice guidelines. e. to create competition by providing patients with a wide range of providers.
People who call for creating a "level playing field" believe that:
a. a country with relatively low wages is typically a country with an abundance of low-skilled labor. b. trading on the basis of comparative advantage benefits both domestic and foreign firms. c. creating a "level playing field" undermines the basis for specialization and economic efficiency. d. production in accordance with comparative advantage is unfair. e. free trade allocates the scarce resources in an efficient way.
Compared to perfect competition, a monopoly will produce ________ output, and charge a ________ price.
A. more; lower B. less; lower C. more; higher D. less; higher