When there is underproduction in a market,
A. market price is too high.
B. there is a deadweight loss.
C. the total of consumer and producer surplus is maximized.
D. there is excess quantity supplied.
Answer: B
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A price searcher faces the following demand function: At $7, 6, 5, 4, and $3, the quantity demanded is 300, 400, 500, 600, and 700 units respectively. Which statement below is true?
A) Total revenue is $11,500. B) Marginal revenue is $300 when the price is $5. C) Marginal revenue is $100 when the price is $5. D) Marginal revenue is $2100 when the price is $3.
Examining the conditions that could lead to a recession in an economy is an example of a macroeconomic topic
Indicate whether the statement is true or false
When households hold money for unplanned expenditures and emergencies, it is called
A) the speculative demand for money. B) the transactions demand for money. C) the irrational demand for money. D) the precautionary demand for money.
Absolute advantage is based on opportunity cost
a. True b. False