A Surplus Will Occur in a Market If

question 53

Multiple Choice

A surplus will occur in a market if:

• A)the quantity being supplied at a given price exceeds the quantity demanded at that price.
• B)the quantity being demanded at a given price is less than the quantity supplied at that price.
• C)there are not enough buyers.
• D)there are only secondary goods being sold.

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Definitions:

Operating Income

The profitability from a company's core business operations, excluding deductions of interest and taxes.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Direct Labor Rate

The cost per labor-hour of the workers directly involved in the manufacturing or production process.

Fringe Benefits

Fringe benefits are additional compensation provided to employees beyond their normal wages, including health insurance, retirement plans, and paid time off.