At Any Quantity at Which the Demand Curve Lies Above

question 31

Multiple Choice

At any quantity at which the demand curve lies above the supply curve,

• A)economic efficiency is achieved
• B)the cost of producing the last unit exceeds its value to some consumer
• C)marginal cost exceeds the market price
• D)the market is Pareto efficient
• E)the value of the last unit to some consumer exceeds the cost of producing it

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Definitions:

Consumer Confidence

A statistical measure that reflects the overall economic health as perceived by consumers, based on their spending and saving habits.

Stock Market

A public marketplace for buying and selling shares of publicly held companies, reflecting the investment climate and economic health.

Housing Construction

The process of building residential structures such as houses, apartments, and townhomes.

Mercantilism

The incorrect theory that a nation’s economic objective should be to accumulate precious metals in the public treasury; this theory prompted trade barriers to cut imports, but other countries retaliated, reducing trade and the gains from specialization.