When the price of a good is higher than the equilibrium price,
a. a shortage will exist.
b. buyers desire to purchase more than is produced.
c. sellers desire to produce and sell more than buyers wish to purchase.
d. quantity demanded exceeds quantity supplied.
c
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Assume an economy produces only footballs and baseballs and the base year is 2005. Quantity producedPrices 2005200620052006Footballs200300$20$25Baseballs500600$10$15Given the data in the table above, what is the value of real GDP in 2006?
A. $12,500 B. $10,000 C. $ 9,000 D. $12, 000
What is job search and what is the relationship between job search and unemployment? What factors can affect the amount of job search? Briefly discuss the effect of each factor
What will be an ideal response?
Which one of the following could cause a recessionary gap?
A. Interest rates are too low. B. Consumers spend more than they earn. C. Price levels are too high. D. Businesses spend more than they save.
A single-price monopolist is producing 500 units of output. At that level, price is $200, and average total cost is $150 . In addition, both marginal cost and marginal revenue equal $120 . Which of the following statements is correct in the short run?
a. The firm has total costs of $60,000. b. The firm could increase its profit by increasing output. c. The firm has a profit per unit of $50. d. The firm is suffering an economic loss of $15,000. e. The firm is earning an economic profit of $40,000.