Which of the Following Is NOT a Characteristic of a Market

question 52

Multiple Choice

Which of the following is NOT a characteristic of a market in equilibrium?

• A)Excess supply is zero.
• B)All consumers are able to purchase an amount equal to their quantity demanded.
• C)Excess demand is zero.
• D)The equilibrium price is stable, i.e., there is no pressure for it to change.

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Definitions:

Bond Issuer

The entity, either a corporation or a government, that borrows funds by selling bonds and is obligated to pay interest on them as well as repay the principal amount at maturity.

Closed Economy

An economy that does not engage in international trade with other economies, neither importing nor exporting goods and services.

Government Deficit

The financial situation in which a government's expenditures exceed its revenues within a given fiscal period, leading to borrowing or debt accumulation.

Private Saving

The portion of households' income that is not consumed or paid in taxes, and is instead saved for future use.