Refer to the figure below. At a price of $3, there will be: 
A. an excess supply of 7 units.
B. an excess supply of 2 units.
C. an excess demand of 7 units.
D. an excess demand of 5 units.
Answer: D
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A sales tax creates a deadweight loss because
A) there is some paper work opportunity cost of sellers paying the sales tax. B) demand and supply both decrease. C) less is produced and consumed. D) citizens value government goods less than private goods. E) the government spends the tax revenue it collects.
Which of the following is not potentially a barrier to entry into a product market?
a. patent protection on the design of the product b. the absence of economies of scale in the product market c. government licensing of the product's producers d. the control of a crucial input necessary to produce the product
Which of the following would be classified as a personal consumption expenditure?
A. Your purchase of this economics course. B. Your purchase of a newly constructed house C. Your purchase of a preowned house. D. Your purchase of one share of Microsoft stock.
Imagine that Odyssey National is a brand new bank, and that its required reserve ratio is 10 percent. If it accepts a $1,000 cash deposit, then, excluding the $1,000 initial deposit, the banking system can increase the money supply by:
A. $900. B. $910. C. $1,000. D. $9,000.