The market clearing price refers to the:
A. equilibrium price that quantity supplied is the highest possible.
B. price where quantity demanded and quantity supplied are the same.
C. minimum price at which items could be sold.
D. maximum price where all suppliers are willing to sell all their production.
B. price where quantity demanded and quantity supplied are the same.
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Which of the following clearly restricts competition?
A) A government policy restricting entry into the market B) A government policy that reduces tariffs on foreign imports C) A business sets price below cost. D) A business sets price above cost. E) Any business pricing scheme that successfully draws customers away from its rivals
It may be necessary to ration a good whenever ___________ exists.
A. a surplus B. excess demand C. excess supply D. None of these choices are correct.
Which of the following would be considered an implicit cost of operating a business?
A) shipping expenses B) Social Security contributions for employees C) the resale value of delivery vans the company owns and uses for its deliveries D) interest payments on a loan
According to the concept of comparative advantage, a good should be produced in that nation in which
A) domestic opportunity cost is greatest. B) domestic opportunity cost is the smallest. C) money is used. D) terms of trade are maximized.