If we say that a price is too high to clear the market, we mean that:
A. the price of the good is likely to rise.
B. quantity supplied exceeds quantity demanded.
C. quantity demanded exceeds quantity supplied.
D. the equilibrium price is above the current price.
Answer: B
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According to this Application, economists have found that the fiscal multiplier is ________ during slack times
A) sometimes larger B) always larger C) always smaller D) none of the above
For a perfectly competitive firm, any price below its minimum AVC is a
A) market price. B) shutdown price. C) profit maximizing price. D) negative price.
Public sector unions now
A. Represent a smaller percentage of workers than private sector unions. B. Represent over five times the percentage of workers in private sector unions. C. Are growing at a smaller rate than private sector unions. D. Are illegal in the United States.
Consider the following regression equation: 
. Which of the following indicates a functional form misspecification in E(y|x)?
A. Ordinary Least Squares estimates equal Weighted Least Squares estimates. B. Ordinary Least Squares estimates exceed Weighted Least Squares estimates by a small magnitude. C. Weighted Least Squares estimates exceed Ordinary Least Squares estimates by a small magnitude. D. Ordinary Least Square estimates are positive while Weighted Least Squares estimates are negative.