Price ceilings frequently lead to
A. an accumulation of surpluses.
B. an increase in the number of units purchased, moving along the demand curve.
C. increased production, since producers respond to increased consumer demand at the low ceiling price.
D. result in the development of black markets.
Answer: D
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The supply of labor in the classical system is a function of the
a. marginal product of labor. b. real wage. c. the public's preference for leisure. d. money wage. e. b and c
The Solo Coal Mine is the only employer in the small town of Way out there. The market supply of coal miners is Qs = 0.02W - 200 and Qd = 500 - 0.02W, where W is the annual wage of a coal miner and Q is the number of coal miners. What is the deadweight loss in the market for coal miners due to the monopsony?
A. $250,000 B. $500,000 C. $125,000 D. $750,000
Not having to pay for a good leads to:
A. underconsumption. B. oversupply. C. overconsumption. D. irrational consumption.
From 1980 to 1987
a. foreigners were buying more assets from the United States than Americans were buying abroad. The United States was going into debt. b. Americans were buying more assets abroad than foreigners were buying from the United States. The United States was going into debt. c. foreigners were buying more assets from the United States than Americans were buying abroad. The United States was moving into surplus. d. Americans were buying more assets abroad than foreigners were buying from the United States. The United States was moving into surplus.