Refer to Figure 6.4. Suppose that the current price is set at A and Q1 units of a good are traded. Which of the following statements is incorrect?
A. The quantity supplied exceeds the quantity demanded.
B. A buyer's willingness to pay is smaller than a seller's willingness to accept at Q1.
C. The consumer surplus would increase should the price fall.
D. Total surplus is not maximized.
Answer: B
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The following equations represent the demand and supply for silver pendants
QD = 50 - 2P QS = -10 + 2P What is the equilibrium price (P) and quantity (Q - in thousands) of pendants? A) P = $20; Q = 15 thousand B) P = $50; Q = 10 thousand C) P = $10; Q = 30 thousand D) P = $15; Q = 20 thousand
An increase in technology causes the optimum level of capital per worker to rise in the long run or steady state
a. true b. false
In a market system, which of the following is a major benefit of making the firm's owners and investors exclusively shoulder the business risk?
A. Those who deeply dislike business risk will not have anything to do with the business B. This allows firms to more easily attract labor and other suppliers of inputs C. This reduces the business risk in the economy D. It makes it easier for the government to monitor and manage the business risk
If the firms hires 5 workers, the average variable costs equals
a. $10 b. $100 c. $800 d. Need more information