A price below the equilibrium price results in
A) a surplus.
B) a shortage.
C) excess supply.
D) a further price fall.
B
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The aggregate demand curve
a. represents the relationship between prices and quantities of all goods produced in an economy b. is derived from equilibrium conditions in the labor and money markets c. gives the equilibrium level of real GDP corresponding to a given price level d. is the sum of an economy's individual demand curves e. plots the interest rate as a function of output
Medicaid and food stamps are
a. available only to the elderly b. part of Social Security c. forms of in-kind assistance d. forms of cash assistance e. transfer payments to the poor
Which of the following will increase economic freedom?
a. institutions and policies supportive of voluntary exchange b. high tariff rates c. high taxes d. rapid and unpredictable inflation e. all of the above
Which statement is true?
A. If the MRP of the last worker hired is higher than the wage rate, the firm has hired too few workers. B. The most important influence on a firm's demand for a factor of production is the demand for the final product. C. A firm will keep hiring more and more of a resource up to the point at which its MRP is equal to its price. D. All of the statements are true.