The term "shortage" refers to a:
A. situation in which the quantity supplied is less than the quantity demanded.
B. situation in which the quantity demanded is less than the quantity supplied.
C. market in which goods have to be sold quickly or the goods tend to rot or otherwise expire.
D. signal that producers need to decrease the price of the good.
A. situation in which the quantity supplied is less than the quantity demanded.
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Which of the following metaphors best expresses the scientific nature of economic theory?
A) like a wool sweater, economic theory warms the heart of the economist. B) like a pair of eyeglasses, economic theory allows one to more clearly see and discriminate among the countless facts he or she faces. C) like a gun, economic theory shoots holes through every other rival theory. D) like a bank, economic theory is concerned with only one thing: the accumulation of money.
Fill in the blank: Demanded services are ________ services
A) instructive B) deductive C) productive D) inductive