Answer the Following Questions About a Market That Is Perfectly

question 162

Essay

Answer the following questions about a market that is perfectly competitive:
a.If the price is above the equilibrium price,would there be a shortage or a surplus?
b.What will happen if the price is below the equilibrium price?
c.During a shortage,how does the market respond until it once again reaches equilibrium?

Comprehend the distinctions and relations between GDP, NDP (Net Domestic Product), GDI (Gross Domestic Income), and NNP (Net National Product).

Recognize how GDP is influenced by changes in output, prices (inflation/deflation), and population.

Identify alternative measures of economic well-being beyond GDP, such as GPI (Genuine Progress Indicator).

Grasp the limitations and criticisms of using GDP as the sole indicator of a country's economic health and welfare.

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Definitions:

Tooling Department

A specialized section within a manufacturing facility responsible for designing, maintaining, and storing tools, dies, and other equipment used in production.

Production Areas

Specific sections within a manufacturing or production facility where goods are made or assembled.

Single Plantwide Rate

An overhead absorption rate that applies the same overhead costs to all products or services regardless of the actual overhead each consumes.

Multiple Production Department Rates

The use of different overhead application rates for various departments within a manufacturing facility to more accurately assign costs.