A market shortage is
A. A situation in which producers cannot sell all the goods and services that they are willing and otherwise able to sell.
B. The result of a price floor.
C. The amount by which the cost of production exceeds the price of a good.
D. The amount by which the quantity demanded exceeds the quantity supplied at a given price.
Answer: D
You might also like to view...
Adam Smith wrote that the:
a. economic problems of eighteenth-century England were caused by free markets. b. government should control the economy. c. pursuit of private self interest promotes the public interest in a market economy. d. public or collective interest is not promoted by people pursuing their self interest.
An increase in the price of a particular bond implies an increase in the interest rate for that bond
a. True b. False Indicate whether the statement is true or false
Suppose the most you would be willing to pay for a plane ticket home is $250. If you buy one for $175, then your economic surplus is:
A. $75. B. $0. C. $250. D. $175.
When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline