Which of the Following Statements Is Not Correct About a Market

question 31

Multiple Choice

Which of the following statements is not correct about a market in equilibrium?

• A)The price determines which buyers and which sellers participate in the market.
• B)Those buyers who value the good more than the price choose to buy the good.
• C)Those sellers whose costs are less than the price choose to produce and sell the good.
• D)Consumer surplus will be equal to producer surplus.

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Definitions:

Minimum Wage

The hourly rate that federal law allows as the least hourly rate to be paid to an employee in the United States.

Hourly Rate

The amount of money paid for each hour of work performed, typically used as a measure of compensation for part-time or contract employees.

FICA Taxes

Taxes collected in the United States to fund Social Security and Medicare, typically deducted from employees' paychecks.

Taxable Income

The portion of an individual's or corporation's income used as the basis for calculating how much tax is owed.