When the current price of a good is below the equilibrium price:
A. sellers will notice their inventories are growing.
B. there will be excess supply.
C. the price will tend to stay below the equilibrium price.
D. buyers have an incentive to offer to pay sellers more than the current price.
Answer: D
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Government health and safety regulations or anti-discrimination laws can reduce real wages by:
A. decreasing the supply of labor. B. increasing worker productivity. C. reducing employer costs. D. decreasing the demand for labor.
Assuming no bequests, with a real interest rate of 10 percent, wealth of $60,000, current income of $70,000, current consumption of $30,000 and future income of $100,000, future consumption equals ________
A) $30,000 B) $70,000 C) $100,000 D) $210,000
If Americans demand goods produced in Mexico, it leads to a demand for Mexican pesos and a supply of U.S. dollars on the foreign exchange market.
Answer the following statement true (T) or false (F)
Which of the following statements is TRUE about the price that a monopolist charges?
A. The difference between the price charged by a monopolist and a perfect competitor is due to differences in costs. B. Too much of the good is being produced in a competitive market and not enough is being produced in a monopoly. Due to the way that prices are set. C. The price is the same as the price that would be charged if there was perfect competition. D. The value that society places on the last unit produced in a monopoly is greater than its cost.