Suppose an economy produces milk and honey, and milk is plotted along the horizontal axis of the production possibilities frontier
If the production in the economy is centrally planned (and not market oriented) so that the MRS for the current production level is 3 but the MRT is 2, then there will be an excess ________ for milk and an excess ________ for honey. A) demand, supply
B) demand, demand
C) supply, demand
D) supply, supply
E) The market is in equilibrium, and there are no imbalances in supply or demand.
A
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When the Fed lowers the federal funds rate, which of the following economic variables responds most rapidly?
A) other short-term interest rates B) consumption expenditure C) the supply of loanable funds D) the long-term real interest rate E) the inflation rate
A monopoly firm's demand curve
A) is more inelastic than the demand curve for the product. B) is inelastic at high prices and elastic at lower prices. C) is perfectly inelastic. D) is the same as the market demand curve.
The slope of a straight line
A) is the same at all points along that line. B) cannot be defined. C) changes from one point to the next on that line. D) is always equal to zero.
A good or service is considered scarce if
a. any quantity of it can be consumed at a zero price b. the amount people desire exceeds the amount available at a zero price c. the amount people desire exceeds the amount available at any price d. the amount people desire is less than the amount available at any price e. the amount people desire is less than the amount available at a zero price