When the market price is above the equilibrium price, suppliers are unable to sell all they want to sell
a. True
b. False
Indicate whether the statement is true or false
True
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Some people argue that to prevent continued dependence on foreign oil, the United States should restrict imports of foreign oil and increase domestic production. What effects would such trade restrictions have on the market for oil in the United States?
What will be an ideal response?
Which of the following is FALSE?
A. Assuming that the law of diminishing marginal utility holds, the demand curve must be upward sloping. B. A consumer is maximizing total utility when he or she gets the same amount of marginal utility from the last dollar spent on each good purchased. C. As additional units of a good or service are consumed, marginal utility diminishes. D. Utility is want-satisfying power.
The concept of inferior goods can be used to show that
A) lower prices signal poorer quality. B) indifference curves can have positive slopes. C) being able to consume more of all goods does not mean that a person will consume more of every good. D) consumers will always buy more of all products if their incomes increase.
An increase in human capital would lead to
a. a decrease in the standard of living b. an upward shift of the production function c. a decrease in productivity d. cutbacks in government skill-training programs e. a decrease of the capital stock