If the Price Level Is

question 34

Multiple Choice

If the price level is:

• A) Above equilibrium,this results in excess supply.
• B) Above equilibrium,this results in a shortage.
• C) Below equilibrium,this results in an increase in the quantity of output offered for sale.
• D) Below equilibrium,this results in a surplus.

---

Definitions:

Production Rate

The speed at which goods are manufactured or processed in a given amount of time, often measured in units per hour or per day.

Machine Capacity

The maximum amount of work that a machine or plant can produce in a given period, usually measured in units of output.

Aggregate Planning

A marketing activity that does an aggregate plan for the production process, in advance of 6 to 18 months, to give an idea to management as to what quantity of materials and other resources are to be procured and when.

Overtime

Additional hours worked beyond the standard work schedule, usually compensated at a higher rate.