If an Economist States That Not Enough of a Good

question 53

Multiple Choice

If an economist states that not enough of a good is being produced,she usually means that

• A) not everyone can afford the good.
• B) price exceeds marginal cost.
• C) consumer surplus equals zero.
• D) at equilibrium, some people who still wish to sell the good cannot find a buyer.

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Definitions:

Labor Market

The marketplace in which individuals offer their labor for employment and employers seek to hire labor to fill available positions.

Resource Market

The market where resources or inputs such as labor, capital, and raw materials are bought and sold.

Rational Decision Maker

An individual or entity that makes choices that maximize benefits while minimizing costs, based on available information and logical analysis.

Shipping Fee

A charge applied for the transportation of goods from one location to another by sea, air, or land logistics.