When an economy is not producing at its potential output, which of the following is likely?
What will be an ideal response?
The actual price level is unexpected.
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Adam Smith
A) is responsible for refining the model of supply and demand. B) is the author of this text. C) is considered the founder of economics. D) introduced the concept of ceteris paribus to the discussion of supply and demand.
Goods and services that the United States sells to other nations are called
A) exchanges. B) world goods. C) imports. D) exports. E) bartered goods.
If the quantity of housing demanded ________ the quantity of housing supplied, scarce housing resources are allocated efficiently because the marginal cost of the housing ________ the marginal benefit
A) is more than; equals B) is less than; equals C) equals; is more than D) equals; is less than E) equals; equals
Rent control is an example of a price floor
Indicate whether the statement is true or false