PriceQuantity DemandedQuantity Supplied$02000$115040$210080$350120$40160 Refer to the table. If the current price in this market is $2 then there is
A. excess demand and pressure on the price to fall.
B. excess demand and pressure on the price to rise.
C. excess supply and pressure on the price to rise.
D. excess supply and pressure on the price to fall.
Answer: B
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People who attend college for four years in order to equip themselves to earn higher incomes in later life are
A) discounting the future at a higher rate than do people who don't attend college. B) giving up future satisfaction for the sake of current satisfaction. C) ignoring the fact that future income has less value than current income. D) investing in human capital. E) revealing a high rate of time preference.
"An increase in the federal minimum wage will provide a living wage for the working poor" is:
a. a statement of positive economics. b. a fallacy of composition. c. a tautology. d. a statement of normative economics.
The output per acre on U.S. farms has
a. remained fairly stagnant since 1968 b. increased only slightly since 1968 c. declined dramatically since the late 1970s d. more than doubled since World War II e. shown a marked decline in recent years
The primary source of scale diseconomies appears to be
a. a firm's inability to acquire quality resources b. too little demand for the firm's product c. consumers who resist dealing with large firms d. division of labor e. the organizational difficulties of managing an ever larger enterprise