A surplus of shoes will cause

A surplus of shoes will cause
 a. a decrease in the supply of shoes
  b. a decrease in the demand for shoes
  c. both a decrease in the supply of shoes and an increase in the demand for shoes
  d. a decrease in the price of shoes, through a shift of either the supply curve or the demand curve
  e. a decrease in the price of shoes

QUESTION 2

A surplus of wheat
 a. is impossible if people are hungry
  b. is impossible if the price of wheat is below equilibrium
  c. will result in an increase the price of wheat
  d. is unlikely to result in any change in the price of wheat
  e. indicates that the problem of scarcity of wheat has been solved

QUESTION 3

A surplus occurs whenever
 a. current price is greater than equilibrium price
  b. quantity supplied exceeds quantity demanded at the equilibrium price
  c. quantity demanded is greater than quantity supplied
  d. the problem of scarcity of a good is solved
  e. some buyers would be willing and able to pay even more for it than they have to at equilibrium

QUESTION 4

When quantity demanded of a good is less than the quantity supplied at the prevailing market price,
 a. the market is in equilibrium
  b. the price of the good tends to rise
  c. the price of the good tends to fall
  d. the demand curve shifts rightward until the surplus is eliminated
  e. the supply curve shifts leftward until the shortage is eliminated

QUESTION 5

Markets reduce transactions costs
 a. by decreasing the time spent searching for information about goods and services
  b. only when they have a highly structured set of rules like the New York Stock Exchange
  c. because each market uses the same set of rules for buying and selling goods and services
  d. only when the government can coordinate the plans of many buyers and sellers
  e. when prices are set by the sellers and are not determined by negotiation between the buyers and the sellers

QUESTION 6

Which of the following statements about markets is not true?
 a. A market is an impersonal mechanism.
  b. Markets coordinate the independent decisions of buyers and sellers.
  c. Markets reduce the transaction costs of exchange.
  d. More specialized markets are generally found in urban areas.
  e. All markets provide the same amounts of information.