If a government-imposed price floor legally sets the price of milk above market equilibrium, which of the following will most likely happen?
a. The quantity of milk demanded will increase.
b. The quantity of milk supplied will decrease.
c. There will be a surplus of milk.
d. There will be a shortage of milk.
C
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If in 2016, a woman made $50,000 on the job, $20,000 from a consulting business she operated, and $25,000 in dividends on stock she owned, she would owe old-age Social Security taxes on
A. $50,000. B. $87,000. C. $70,000. D. $95,000.
In a perfectly competitive market, consumer surplus typically is
A) positive. B) negative. C) zero. D) undefined.
Which of the following is often described as the most powerful person in the U.S. economy?
A. The president of the United States. B. The Speaker of the House of Representatives. C. The chairman of the House Ways and Means Committee. D. The chairman of the Federal Reserve.
When a 5% increase in price leads to an 8% increase in quantity supplied, supply is relatively inelastic
a. True b. False Indicate whether the statement is true or false