A surplus exists
A. when quantity supplied is greater than quantity demanded.
B. in equilibrium.
C. when quantity supplied is less that quantity demanded.
D. at the market clearing price.
Answer: A
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Feasible options are options:
A) that are available and affordable. B) that are available but not affordable. C) that are affordable but not available. D) that are optimal for an economic agent.
Refer to Figure 2-15. In the circular flow diagram, economic agents M represent
A) firms. B) product markets. C) factor markets. D) households.
Fixed costs are:
A. costs that depend on the quantity of output produced. B. inputs costs that stay the same price per unit. C. costs that don't depend on the quantity of output produced. D. costs that are negotiated to stay the same throughout the life of a contract.
If the government removes a binding price ceiling in a market, then the producer surplus in that market will increase
a. True b. False Indicate whether the statement is true or false