Suppose, with a given supply and demand curve, the market for guitars would clear at $500, but the current price of guitars is $700. Given the above information,
A) there is a shortage of guitars.
B) there is a surplus of guitars.
C) the market for guitars is fully coordinated.
D) the quantity of guitars supplied equals the quantity demanded.
B
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We observe evidence of a shortage when we see
A) the quantity purchased is greater than the quantity supplied. B) the quantity purchased is less than the quantity supplied. C) nonmonetary costs of acquisition have risen. D) goods have becomes more scarce. E) prices have increased suddenly and substantially.
Which of the following will be categorized as an intermediate good in national income accounting?
a. The value of oregano used as a seasoning for pizzas b. The crops consumed by a farmer's family members c. The present value of a car produced a couple of years ago d. A clunker sold during the current year e. The value of an antique piece of jewelry handed down over generations in a family