When there is a shortage, producers raise prices in an attempt to
a. separate the quantity supplied and demanded
b. raise the quantity demanded
c. equalize the quantity supplied and demanded
d. lower the quantity supplied
Ans: c. equalize the quantity supplied and demanded
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The "law of demand" in economic theory asserts that
a. demand generates a supply sufficient to satisfy the demand. b. nothing will be produced unless there is a demand for it. c. people will purchase less of a good when its price rises. d. wants are indefinitely expansible and can never be fully satisfied. e. whatever people want will eventually be supplied.
If the total expenditures of a typical family equaled $35,000 per year in 2010 and the exact same basket of goods and services cost $40,000 in the year 2015, the family's cost of living:
A. increased by 14 percent. B. decreased by 14 percent. C. increased by 12.5 percent. D. decreased by 12.5 percent.
Suppose there are two economies, Alpha and Beta, that have the same production possibilities frontiers. If Beta devotes more resources to produce capital goods than consumer goods as compared to Alpha, then in the future
A. Beta will experience greater economic growth than Alpha. B. Alpha will not be able to achieve full employment or productive efficiency. C. Alpha will experience greater economic growth than Beta. D. Beta will not be able to achieve full employment or productive efficiency.
Which of the following is not one of the basic legal forms of business organization in the United States?
a. corporation. b. syndicate. c. sole proprietorship. d. partnership.