Which statement about a market at equilibrium price and quantity is false?
A. The market could not have achieved equilibrium without government interference.
B. Some buyers have unsatisfied wants.
C. Producer surplus plus consumer surplus is maximized.
D. Gains from trade are maximized.
Ans: A. The market could not have achieved equilibrium without government interference.
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The supply-side shocks that affected the United States in 1973 and 1979 were the result of
A. government tax policies. B. union wage demands. C. OPEC policies regarding the availability and price of crude oil. D. periods of stagflation in which the United States had achieved low or negative rates of growth in real GDP.
The following is cost information for the Creamy Crisp Donut Company: Entrepreneur's potential earnings as a salaried worker = $50,000 Annual lease on building = $22,000 Annual revenue from operations = $380,000 Payments to workers = $120,000
Utilities (electricity, water, disposal) costs = $8,000 Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business = $6,000 Refer to the data. Creamy Crisp's total revenues exceed its total costs, including a normal profit, by: A. $150,000. B. $94,000. C. $80,000. D. $230,000.
Cyclical unemployment is:
A. long-term and chronic unemployment that exists even when the economy is producing at a normal rate. B. short-term unemployment that is associated with the process of matching workers with jobs. C. the additional unemployment not captured in official statistics resulting from discouraged workers and involuntary part-time workers. D. the extra unemployment that occurs during periods of recession.
Refer to Scenario 1. What is the total output when 2 hours of labor are employed?
A) 80 B) 100 C) 180 D) 200