Question

37. If we know each consumer's demand curve, we can derive the market demand curve by: A) vertically summing the individual demand curves. B) horizontally summing the individual demand curves. C) averaging the individual demand curves. D) obtaining consumer incomes and summing them. E) none of the above. 38. Which resource is not an example of capital? A) equipment B) stocks and bonds C) physical plants D) machinery 39. Because of scarcity, A) the available supply of time.goods, and resources is greater than human wants. B) every desire is fulfilled. C) it is impossible to satisfy every desire and choices must be made. D) there are no limits on the economy's ability to satisfy unlimited wants. 40. A surplus occurs when A) the quantity demanded exceeds the quantity supplied. B) the price is below the equilibrium price C) the price is at the equilibrium D) the price is above the equilibrium

Answer 1

37. B

Market demand curve is determined by horizontally summing individual demand curves.

38. B

Stocks and bonds are a part of money market

39. C

Human wants are unlimited and resources are limited

40. D

When quantity supplied exceeds quantity demanded