When there is excess supply of a product in a market, which of the following is true?
a. Price must be above the equilibrium price.
b. Price will tend to rise.
c. Producers will expand output and sales will rise.
d. Price must be below the equilibrium price.
a. Price must be above the equilibrium price.
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In a Malthusian world, why is misery recurrent?
A) The marginal returns of capital are decreasing. B) Fertility is endogenous. C) Output is increasing in labor. D) Mortality depends on the standard of living.
What characteristics of both the product market and the labor market enhance the likelihood that a union will be effective?
Which is a determinant of demand?
a. Production costs b. Technology c. Amount of economic resources d. Number of buyers
During the financial crisis of 2007–2009, the U.S. government determined that
A. AIG was too big to fail but Lehman Brothers was not. B. Lehman Brothers was too big to fail but AIG was not. C. both Lehman Brothers and AIG were too big to fail. D. neither Lehman Brothers nor AIG were too big to fail.