When there is an excess quantity of a product supplied, there will be
A) a tendency for price of the product to increase.
B) a tendency for price of the product to fall.
C) incentives for consumers to leave the market.
D) upward pressure on the price of labor.
Answer: B
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Increasing the capital available to the workforce, holding other factors constant, tends to ________ total output while ________ labor productivity.
A. decrease; increasing B. increase; decreasing C. increase; not changing D. increase; increasing
Because of the increasingly global market for loanable funds, crowding out may not cause a significant problem in some ________ countries. However, it can adversely affect economic growth in ________ countries.
A. developed; other developed B. developing; developed C. developed; developing D. developing; other developing
An indirect cost of government debt is:
A. it can distort the credit market and slow economic growth. B. it can cause hyperinflation. C. it can cause unemployment below the natural rate. D. All of these are true.
Which of the following would not be included in GDP?
a. the real estate commission on the sale of a used home b. an attorney's fee for handling the sale of a used home c. the value of a used home, at its sale price d. fees paid to have the house cleaned