If the price of a good is below its equilibrium level, then
a. an excess supply will result
b. quantity supplied exceeds quantity demanded
c. the supply curve will shift to the right
d. quantity demanded exceeds quantity supplied
e. the demand curve will shift to the left
D
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Suppose the Oakland Raiders football team increases their season ticket prices and total revenue from ticket sales falls, but not to zero. This fact means that the demand for Raiders tickets is
A) inelastic. B) elastic. C) unit elastic. D) perfectly elastic. E) perfectly inelastic.
Buying insurance and then never making a claim:
A. is considered by economists to be irrational behavior. B. means buying the insurance was a bad decision. C. does not mean buying the insurance was a bad decision. D. is a poor use of money.
A Korean steel company produces steel in the United States, with some of its steel being exported to other nations and some of it being sold within the United States. If the prices of this steel increase, then
a. the GDP deflator and the CPI will both increase. b. the GDP deflator will increase and the CPI will be unchanged. c. the GDP deflator will be unchanged and the CPI will increase. d. the GDP deflator and the CPI will both be unchanged.
The smallest size plant size at which the long-run average cost curve is at its minimum is called the
A. shut down point. B. minimum efficient scale. C. envelope. D. profit-maximizing scale of production.