Which of the following causes excess demand?
A. The market price is below the equilibrium price.
B. The demand curve shifts to the left.
C. The quantity supplied is greater than the demand.
D. The market price is above the equilibrium price.
Answer: A. The market price is below the equilibrium price.
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The price chosen by a monopolist:
A) maximizes social surplus. B) maximizes consumer surplus. C) is dependent on the production of other firms. D) is independent of the production of other firms.
One reason why, in the short run, the marginal product of labor might increase initially as more workers are hired is that
A) beyond some point, a firm has hired too many workers. B) specialization allows a worker to focus on one task, thereby increasing her proficiency at that task. C) the best workers are hired first and later hires are not as skillful. D) the first workers hired get to use the best equipment.
Interest rates declined in 2007 . What happened to bond prices during this time?
a. They were unchanged. b. They increased. c. They decreased. d. Not enough data to answer.
The story The Wizard of Oz can be interpreted as an allegory about U.S. monetary policy in the late 19th century
a. True b. False Indicate whether the statement is true or false