The amount by which the quantity demanded exceeds the quantity supplied at a given price is a
A. Balance-of-payments surplus.
B. Market surplus.
C. Balance-of-payments deficit.
D. Market shortage.
Answer: D
You might also like to view...
Purchasing power parity does NOT provide accurate predictions of exchange rates because
A) almost all goods and services are traded across nations. B) governments currently fix exchange rates. C) firms are unable to set prices differently across nations. D) non-traded goods account for approximately 50 percent of the value of production in an economy.
Marginal utility theory predicts that as the price of coffee rises, the ________ a substitute for coffee ________ and the ________ coffee ________
A) supply of; increases; demand for; decreases B) supply of; decreases; supply of; increases C) demand for; increases; quantity demanded of; decreases D) demand for; decreases; demand for; increases
Assume two firms have the same total costs of production. Firm A's average variable cost if $5 per unit and firm B's average variable cost is $7 . Both firms have an average total cost of $8
If the current market price is $6 and remains unchanged what action will both firms take in the short run and the long run?
Ever since the creation of the interstate highway system, the railroads have had to compete with trucks for freight shipments. Union Pacific, the nation's largest railroad, now offers door-to-door services to clients, using their own trains and trucks. This must be the result of:
a. horizontal merger. b. vertical merger. c. conglomerate merger. d. deregulation. e. high fuel prices.