A Shortage of Wheat

question 83

Multiple Choice

A shortage of wheat:

• A)is impossible if people are hungry.
• B)is impossible if the price of wheat is higher than the market equilibrium.
• C)will result when the quantity supplied exceeds the quantity demanded at the current price.
• D)is unlikely to cause any change in the price of wheat.
• E)indicates that the problem of scarcity of wheat has been solved.

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Definitions:

Real Opportunity Cost

The value of the best alternative forgone as a result of making a particular choice, expressed in terms of real goods and services.

Producing Product

The process of creating goods or services that are offered in the market for consumption or use.

Resources

Assets or inputs used to produce goods and services.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, indicating the financial gain in excess of opportunity costs.