There will be a surplus of a product when:
A. price is below the equilibrium level.
B. the supply curve is downward sloping and the demand curve is upward sloping.
C. the demand and supply curves fail to intersect.
D. consumers want to buy less than producers offer for sale.
Answer: D
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A large government debt can reduce the amount of ________ in an economy and reduce future income and real wages for citizens
A) employment B) capital C) social benefit programs D) government spending
Minimum efficient scale is defined as the level of output at which
A) the firm's long-run average total cost starts falling. B) all economies of scale are exhausted. C) the maximum output is produced. D) diminishing returns affect average total cost.
In the diagram below, the profit maximizing price level is 
A. 3. B. 4. C. 1. D. 2.
Answer the following questions true (T) or false (F)
1. If, when price changes by 35 percent, the quantity demanded changes by 7 percent, then the absolute value of the price elasticity of demand is 5. 2. Suppose at a price of $50, Yoshi's Jazz Bar sells 20 tickets to its nightly jazz performance and at a price of $40, it sells 25 tickets. Based on this information, the demand for Yoshi's jazz performance is elastic. 3. If demand is inelastic, the absolute value of the price elasticity coefficient is greater than one.