Which of the following statements is NOT true about Say's law?
A. Markets would be regularly hit by severe shortages and surpluses.
B. Desired expenditures will equal actual expenditures.
C. People produce more goods than they want for their own use only if they seek to trade them for other goods.
D. Surpluses will be eliminated by falling prices and shortages will be eliminated by increasing prices.
Answer: A
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According to the above table, if the minimum wage is set at $20 per hour, then
A) the quantity of labor demanded will increase until it is equal to the quantity of labor supplied. B) there is an excess demand for labor. C) the labor demand curve will shift until $20 is the new equilibrium real wage rate. D) the quantity of labor supplied exceeds the quantity of labor demanded by 50 million hours per month. E) the labor supply curve will shift until $20 is the new equilibrium real wage rate.
If you have a choice of consuming either two apples, three oranges, or one candy bar, the opportunity cost of the candy bar is:
a. two apples. b. three oranges. c. two apples and three oranges. d. two apples or three oranges, whichever you value more. e. the difference in the prices of the three options.
Firms in a competitive market are said to be price takers because there are many sellers in the market, and the goods offered by the firms are very similar if not identical
a. True b. False Indicate whether the statement is true or false
Choose the letter of the diagram in Figure 3.1 that best describes the type of shift that would occur in each situation for the market listed on the left, ceteris paribus. Figure 3.1 Shifts of Supply and Demand Steel: the government introduces environmental restrictions on the dumping of wastes from producing steel.
A. A. B. B. C. C. D. D.