28 A surplus exists in a market if the actual price is

• A.equal to equilibrium price.
• B.below equilibrium quantity.
• C.below equilibrium price.
• D.above equilibrium price.
• E.None of the answers are correct.

31 If you receive a decrease in your wage income, we would expect

• A.your demand for inferior goods to increase.
• B.your demand for luxury goods to increase.
• C.None of the answers are correct.
• D.your demand for normal goods to increase.
• E.your demand for each good you purchase to remain unchanged.

32 A farmer can produce either a corn or wheat in his field and he is indifferent between them. If the price of corn decreases, then the

• A.supply of corn would decrease.
• B.supply of wheat would increase.
• C.None of the answers are correct.
• D.supply of corn would increase.
• E.supply of wheat would decrease.

33 The saying, "There is no such thing as a free lunch," is used to define the concept of

• A.productivity.
• B.None of the answers are correct.
• C.tradeoffs.
• D.efficiency.
• E.scarcity.

37 If the price of a product increases:

• A.the price increase has no effect on the producer surplus.
• B.the consumer surplus will increase.
• C.None of the answers are correct.
• D.the producer surplus will decrease.
• E.the consumer surplus will not change.

39 The law of demand is illustrated by a demand curve that is:

• A.upward sloping.
• B.vertical.
• C.constant sloping.
• D.horizontal.
• E.None of the answers are correct.