If the government imposes an effective ________, output decreases and ________ increases
A) price support; consumer surplus
B) price floor; consumer surplus
C) price support; total revenue
D) price floor; marginal benefit to consumers
E) price ceiling; efficiency
C
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Which of the following is a common way of measuring the average standard of living?
a. The unemployment rate plus the inflation rate b. Real GDP divided by the price level c. The unemployment rate multiplied by the population d. Real GDP divided by the population e. Inflation rate divided by the population
The United States has never had deflation
a. True b. False Indicate whether the statement is true or false
The possibility of speculative bubbles in the stock market arises in part because
a. stock prices may not depend at all on psychological factors. b. fundamental analysis may be the correct way to evaluate the value of stocks. c. future streams of dividend payments are very hard to estimate. d. the value of shares of stock depends not only on the future stream of dividend payments but also on the price at which the stock will be sold.
One reason economists have many different views on social policy is that:
A. economic policy cannot involve value judgments. B. policy proposals must be based on precise evidence. C. economic policy is an exact science. D. policy proposals are based on various models that focus on different aspects of a problem.