If producers incorrectly set the price of their product too low a:
A. shortage will result and consumers will bid the price down to equilibrium.
B. surplus will result and excess goods in inventory will signal the producers to lower their prices.
C. shortage will result and consumers will bid the price up to equilibrium.
D. surplus will result and excess goods in inventory will signal the producers to restrict output until sales increase.
C. shortage will result and consumers will bid the price up to equilibrium.
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Suppose that the opportunity cost of a student's time is greater when he studies than when he works. What mistake is he making and why?
What will be an ideal response?
The sale of government securities by the Fed will cause
a. a decrease in both the monetary base and the money supply. b. an increase in both the monetary base and the money supply. c. an increase in the monetary base but no change in the money supply. d. a decrease in the monetary base but no change in the money supply.
The following is cost information for the Creamy Crisp Donut Company: Entrepreneur's potential earnings as a salaried worker = $50,000 Annual lease on building = $22,000 Annual revenue from operations = $380,000 Payments to workers = $120,000
Utilities (electricity, water, disposal) costs = $8,000 Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business = $6,000 Refer to the data. If, other things equal, Creamy Crisp's revenue fell to $286,000: A. its implicit costs, including a normal profit, would exceed its explicit costs. B. it would earn a normal profit but not an economic profit. C. it would suffer an economic loss. D. its accounting profit would fall to zero.
This agency is responsible for preventing businesses from engaging in misleading advertising, unfair trade practices, and monopolistic actions, as well as for protecting consumer rights
A) Environmental Protection Agency B) Food and Drug Administration C) Equal Employment Opportunity Commission D) Federal Trade Commission