Which of the following results if at a particular price level, the aggregate quantity supplied exceeds the aggregate quantity demanded?
A. Aggregate demand shifts to the right.
B. A surplus causes the price level to fall.
C. Aggregate supply shifts to the left.
D. A surplus causes the price level to rise.
Answer: B
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Provide three examples of scarcity that illustrate why even the 1,210 billionaires in the world face scarcity
What will be an ideal response?
A way in which government can attempt to solve the problems caused by information asymmetry in the marketplace is:
A. signaling. B. statistical discrimination. C. mandating that information be shared. D. All of these are ways the government deals with information asymmetry.
In purchasing products A and B, a consumer is in equilibrium when:
A) MUa/Pa = MUb/Pb B) MUa/Pb = MUb/Pa C) MUa - MUb = Pa/Pb D) MUa × Pa = MUb × Pb
Refer to the graph below. If the output level is Q1, then the sum of the consumer and producer surplus is:
A. bce
B. ac0
C. 0abe
D. 0eQ1