When the price system fails to generate an efficient allocation of resources
A) the market will always correct it.
B) consumers will spend less.
C) business will produce more.
D) too few or too many goods will be produced.
D
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The United States has approximately
A. 100,000 businesses. B. 5.1 million businesses. C. 14 million businesses. D. 30 million businesses.
If the real wage is above the equilibrium level in the labour market:
a) The quantity demanded of labour is higher than the quantity supplied b) The quantity demanded of labour equals the quantity supplied c) The quantity demanded of labour is lower than the quantity supplied d) The real wage will automatically rise in the short run to bring about equilibrium
If the supply and demand curves cross at a quantity of 100, then the price necessary to get firms to sell more than that will have to be ________ equilibrium.
A. within 10% either way of B. above C. at D. below
During its run on Broadway, the play The Producers regularly sold out all available tickets at the St. James Theater. The theater could have raised ticket prices from $75 to $125 and still sold all available tickets but chose not to do so. The best
explanation for this decision is A) theater owners are unaware of the elasticity of demand for Broadway shows. B) theater owners do not want to raise their prices on weekends, when demand is high, and then have to lower prices during the week, when demand is lower. C) firms sometimes give up profits in the short run to keep their customers happy and increase their profits in the long run. D) theater owners are not motivated to maximize their profits.