When market price is above equilibrium price
A. a shortage is generated.
B. market price will rise.
C. quantity supplied is greater than quantity demanded.
D. None of these choices are correct.
C. quantity supplied is greater than quantity demanded.
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During periods of hyperinflation, which of the following is the most likely response of consumers?
a. Spend money as fast as possible. b. Lend money. c. Invest as much as possible. d. Save as much as possible.
(Consider This) Suppose that coffee growers sell 200 million pounds of coffee beans at $2 per pound in 2015 and 240 million pounds for $3 per pound in 2016. Based on this information, we can conclude that the:
A. law of supply has been violated. B. law of demand has been violated. C. demand for coffee beans has increased. D. supply of coffee beans has increased.
Answer the following questions true (T) or false (F)
1. There will be no deadweight loss if the marginal benefit to consumers is equal to the marginal cost of production and the sum of consumer surplus and producer surplus is maximized. 2. If marginal benefit is less than marginal cost, output is inefficiently high. 3. The difference between consumer surplus and producer surplus in a market is equal to the deadweight loss.
All of the following explain why purchasing power parity does not completely explain long-run fluctuations in exchange rates except
A) some countries impose barriers to trade. B) not all goods and services produced in any country are traded internationally. C) most countries have free markets with little, if any, government regulation. D) consumer preferences for goods and services differ across countries.