In a competitive market, excess demand for a good exists whenever
a. the current price is below the equilibrium price
b. resources are scarce
c. the quantity supplied at the current price exceeds the quantity demanded
d. sellers are subject to the constraints imposed by input prices and technology
e. the current price is above the equilibrium price
A
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Suppose you hold $5,000 in cash when the interest rate on bonds is 4 percent. Other things equal, as the bond interest rate declines to 3 percent, you will want to hold more money because the opportunity cost of holding money has decreased
a. True b. False Indicate whether the statement is true or false
Deadweight losses are associated with
a. taxes that distort the incentives that people face. b. taxes that target expenditures on survivor's benefits for Social Security. c. taxes that have no efficiency losses. d. lump-sum taxes.