Answer the following statement true (T) or false (F)
1) Surpluses drive market prices up; shortages drive them down.
2) If demand increases and supply simultaneously decreases, equilibrium price will rise.
3) The rationing function of prices refers to the fact that government must distribute any surplus
goods that may be left in a competitive market.
4) An increase in quantity supplied might be caused by an increase in production costs.
1) F
2) T
3) F
4) F
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The economic development in Central America and the Caribbean countries has suffered from problems mentioned below except
a. The extreme poverty prevailing in the country b. Prolonged and continued U.S. military intervention in the region c. The rich people buying many luxury goods d. Substandard educational system that cannot cater to the needs to the industry e. Availability of rich middle class in the country
In the below graph, unemployment created by the minimum wage is:
A. B - A
B. B - 0
C. B - E
D. 0