Shortage of a good occurs if:
a. the price of the good is higher than the equilibrium price
b. the government imposes a restriction on the consumption of the good.
c. buyers want to buy more than sellers want to sell.
d. buyers want to buy less than sellers want to sell.
c
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The marginal cost to the phone company of handling a long distance call is likely to be
A) higher the fewer such calls people make. B) higher the more the phone company has invested in equipment. C) substantially less than the price charged for the call. D) substantially more than the price charged for the call.
The investment function implies that current output does not influence investment. Does that make sense?
What will be an ideal response?
In Macroland, potential output equals $100 trillion and the natural rate of unemployment is 4 percent. If the actual unemployment rate is 3 percent, then real GDP equals:
A. $97 trillion. B. $98 trillion. C. $102 trillion. D. $101 trillion.
Refer to the above graph. If the production possibilities curve for an economy is at CD, but the economy is operating at point x, the reasons are most likely to be because of:
A. lack of full employment and inefficient allocation of resources. B. improvement in labor productivity and the number of work-hours. C. increases in the quantity and the quality of resources. D. technological progress and industrial change.