When price is below the equilibrium level, there is a shortage of the commodity being sold
a. True
b. False
Indicate whether the statement is true or false
True
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A two-firm oligopoly is called a
A) double monopoly. B) cartel. C) duopoly. D) monopolistic oligopoly. E) dual-market.
When economists talk about "optimal outcomes" in the marketplace, they mean that
A. All the consumer desires are satisfied and business profits are maximized. B. The allocation of resources by the market is likely to be the best possible, given scarce resources and income constraints. C. Everyone who wants a good or service can have it. D. The allocation of resources by the market is perfect.
The Federal Reserve System is composed of:
A. three branches with overlapping responsibilities. B. six branches with overlapping responsibilities. C. twelve branches with clear responsibilities. D. five branches with clear responsibilities.
The Coffee Nook, a small cafe near campus, sells cappuccinos for $2.50 and Russian tea cakes for $1.00 each. What is the opportunity cost of buying a Russian tea cake?
A) 2 1/2 cappuccinos B) 2/5 of a cappuccino C) $2.50 D) $1.00