When the price of a good in a market is above equilibrium:
a. the quantity supplied exceeds the quantity demanded.
b. a surplus is observed
c. the price will fall in the near future.
d. all of the above.
d
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Refer to Figure 5-10. One way to obtain the economically efficient amount of chicken pox vaccinations is for governments to subsidize these vaccinations
What is the size of the per-vaccination Pigovian subsidy that the government must provide to internalize the external benefits? A) (PE - PF) B) PE C) (PF - PG) D) (PE - PG)
If firms that practice second degree price discrimination use more block prices,
A) both consumer surplus and welfare will decrease. B) both consumer surplus and welfare will increase. C) consumer surplus will decrease, but welfare will increase. D) consumer surplus will increase, but welfare will decrease.
If the labor-force participation rate is 90% and the total population 16 years of age or older is 3 million people, the labor force is
A. 2,450,000 people. B. 2,700,000 people. C. 3,300,000 people. D. 3,900,000 people.
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.