Answer the following questions true (T) or false (F)
1. A surplus occurs when the actual selling price is above the market equilibrium price.
2. A competitive market equilibrium is a market equilibrium with many buyers and sellers.
3. In response to a shortage, the market price of a good will rise. As the price rises, the demand will decrease and supply will increase until equilibrium is reached.
1. TRUE
2. TRUE
3. FALSE
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Refer to Table 2-7. What is Mickey's opportunity cost of making an umbrella?
A) 1/5 of a hat B) 5 hats C) 10 hats D) 50 hats
Which of the following statements is true?
A) Because the cost of labor used on farms is so high, the United States exports very little of its wheat, rice and corn crops. B) France is the leading exporting country, accounting for 10 percent of total world exports. C) Japan is more dependent on foreign trade than is the United States. D) Imports and exports account for over one-half of the GDP of Belgium.