When the price of a good is lower than the equilibrium price,
a. a surplus will exist
b. buyers desire to purchase more than is produced.
c. sellers desire to produce and sell more than buyers wish to purchase.
d. quantity supplied exceeds quantity demanded.
b
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If two events are perfectly negatively correlated, then
A) diversification can reduce but not eliminate risk. B) diversification can eliminate risk. C) diversification has no impact on risk. D) diversification cuts risk in half.
In 2011, a household with an annual income of $75,000 would find itself in the:
A. second lowest quintile of the household income distribution. B. third quintile of the household income distribution. C. fourth quintile of the household income distribution. D. fifth (highest) quintile of the household income distribution.
If a firm faces perfectly competitive product and factor markets and the marginal product of labor and capital are 4 and 9, respectively, while the wage rate is $2 and the rental rate on capital is $4, the firm should
A. decrease all inputs proportionately. B. use relatively less capital. C. use relatively more capital. D. increase all inputs proportionately.
Refer to the graph. The point Y represents the:
A. Rate of return for the market portfolio B. Rate of return for the risk-free asset C. Risk premium for the market portfolio D. Compensation for time preference for a given asset