Prices below the free market equilibrium price are inefficient because the willingness to pay by someone to consume an additional unit ________ the marginal cost to someone for producing that unit.
A. exceeds
B. is less than
C. equals
D. None of these; efficiency is defined in terms of natural resources, not market equilibrium.
Answer: A
Economics
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The difference in wage rates needed to make two jobs equally attractive to workers is known as a(n)
a. equilibrium wage rate b. competitive wage c. equalizing wage d. compensating wage differential e. efficient wage
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Currently you purchase ten frozen pizza per month. You will graduate from college in December, and you will start a new job in January. You have no plans to purchase frozen pizzas in January. For you, frozen pizzas are a(n)
a. substitute good. b. normal good. c. inferior good. d. complementary good.
Economics