What is the result of an agricultural support price established above the equilibrium price?
A. There will be excess quantity demanded the product in this market.
B. Since the support price is set above the equilibrium price, it will have no impact on the market price.
C. There will be excess quantity supplied of the product involved.
D. The market gravitates toward and remains in equilibrium.
Answer: C
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Economic growth is best defined as
A) decreases in potential GDP. B) increases in potential GDP. C) rightward shifts of the AD curve. D) rightward shifts of the SAS curve.
What is a "social cost" of production?
A) the sum of all costs to individuals in society, regardless of whether the costs are borne by those who produce the products or consume the product B) the cost of the environmental damage created by production C) the total costs of producing a product, both implicit and explicit costs D) the cost of the natural resources used up in production
An example of structural unemployment is a(n):
a. textile worker who quits one job and waits for the new job to begin. b. engineer permanently laid off due to advances in technology. c. computer programmer who becomes rich and leaves the labor force. d. All of these.
Whether prices or real GDP exhibit the greater response to increased aggregate demand depends on the degree of capacity utilization in the economy
a. True b. False Indicate whether the statement is true or false