When a surplus exists
A) the price is below the market clearing price.
B) quantity demanded exceeds quantity supplied.
C) an excess quantity demanded exists.
D) none of the above.
Answer: D
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Total factor productivity in railroads _____________ in the 20 years prior to the Civil War
a. decreased slightly b. remained largely unchanged c. increased by about 25 percent d. more than doubled
In most places of the world, the marginal utility of water is low because
a. its supply is so abundant b. it is so essential c. it has so many uses d. total utility is so high e. it is very scarce
When P = $5, the quantity demanded of a good is 30 units, and the quantity supplied of the good is 50 units. For every $1 decrease in the price of this good, quantity demanded rises by 5 units and quantity supplied falls by 5 units. The equilibrium price of this good is ___________and the equilibrium quantity of this good is _________ units
A) $3; 40 B) $4; 35 C) $2; 45 D) $2; 35 E) $3; 35
Suppose that garbage collectors and landscaping workers have no unions. Now suppose that garbage collectors form unions. What does this do to the labor supply and wages of landscaping workers?
a. Both labor supply and wages increase. b. Labor supply increases, and wages decrease. c. Labor supply decreases, and wages increase. d. Both labor supply and wages increase.