Which of the following statements is correct?
A. A shortage and scarcity are the same thing.
B. A shortage occurs when the quantity demanded is greater than the quantity supplied at a price below the market clearing price.
C. A shortage occurs when the quantity demanded is less than the quantity supplied at a price below the market clearing price.
D. A shortage occurs when the quantity demanded is less than the quantity supplied at a price above the market clearing price.
Answer: B
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When a nation has a comparative advantage in the production of a particular good
A) the nation tends to avoid specialization. B) the comparative advantage encourages self-sufficiency. C) the opportunity cost of producing that good is higher than that of other goods. D) the nation can gain from trade.
__________ make(s) it easy for small savers to diversify their portfolios
A) Direct finance B) Traded securities C) Regulation Q D) Financial intermediaries
All of the following conditions, except one, are satisfied when a perfectly competitive market is in short-run equilibrium. Which is the exception?
a. No firm is suffering an economic loss. b. Each buyer purchases the quantity he wants at the market price. c. Each seller produces the quantity she wants at the market price. d. Suppliers want to sell the same quantity that buyers want to purchase. e. The market coordinates the independent decisions of all the participants.
In which of these continuums of degrees of competition (highest to lowest) is oligopoly properly placed?
A. Pure competition, oligopoly, pure monopoly, monopolistic competition. B. Oligopoly, pure competition, monopolistic competition, pure monopoly. C. Monopolistic competition, pure competition, pure monopoly, oligopoly. D. Pure competition, monopolistic competition, oligopoly, pure monopoly.