A shortage will develop when
A. the quantity supplied is greater than the quantity demanded.
B. the government provides subsides to producers.
C. the discovery of new technology reduces production costs.
D. the market price is below the equilibrium price.
Ans: D. the market price is below the equilibrium price.
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In less-developed countries with rapid population growth,
a. the standard of living will always rise because population is the key to rising living standards b. the standard of living will always fall c. the standard of living will always remain constant d. the standard of living will fall if population grows faster than output e. will be independent of population growth due to foreign aid payments by rich countries
In the short run, a firm operating in a monopolistically competitive market can earn
a. positive economic profits. b. economic losses. c. zero economic profits. d. All of the above are possible.
Which of the following applies to discouraged workers?
(A) They are included in the unemployment rate. (B) They are workers who were injured on the job and can no longer work. (C) They are workers who move to another country to look for work. (D) They are not included in the unemployment rate.
In a given year, a country's GDP = $9841, net factor payments from abroad = $889, taxes = $869, transfers received from the government = $296, interest payments on the government's debt = $103, consumption = $8148, and government purchases = $185. The country had private saving equal to
A. $2112. B. $2397. C. $285. D. $3850.