There Will Be a Surplus of a Product When

question 88

Multiple Choice

There will be a surplus of a product when

• A) price is below the equilibrium level.
• B) the supply curve is downward sloping and the demand curve is upward sloping.
• C) the demand and supply curves fail to intersect.
• D) consumers want to buy less than producers offer for sale.

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Definitions:

Marginal Productivity Theory

A principle that describes how the addition of a unit of labor or capital increases output, holding other factors constant.

Unequal Distribution

A situation where resources, wealth, or opportunities are not evenly shared among members of a society.

Median Earnings

The midpoint of income distribution, meaning that half of the workers earn more than this amount and half earn less.

Labor Market

A marketplace where employers and employees interact concerning the exchange of labor for compensation.