Which of the following is a symptom of a price floor?
a. scalping of Super Bowl tickets
b. surplus cheese
c. the New York city housing shortage
d. black markets
e. milk shortages
b
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Individuals who are more risk averse
a. buy less insurance b. buy more insurance c. are not more or less inclined to buy insurance d. are philosophically opposed to insurance
Which of the following is not a transfer payment?
a. a $100 check from your parents to you b. a birthday present from your roommate c. your grandmother's monthly Social Security check d. your uncle's unemployment insurance check e. the interest payments on the savings bond your dad bought last month
Which of the following offers the best example of an external cost?
a. The opportunity cost of money that an entrepreneur has invested in her business b. The payments to owners of labor resources and coal inputs used by a coal-burning electric generating facility c. The price paid by households for electricity service, including both the electricity itself and the cost of transporting the electricity through power lines d. The harms to private property, open-access resources, and human health caused by pollution byproducts of electricity production
Which of the following is true of exchange?
a. Exchange is a zero sum activity; if one party gains, the other must lose an equal amount. b. The exchange value of a good is determined by the cost of the resources required to produce the good. c. The total output that trading partners are able to produce is not influenced by whether they trade with each other. d. Exchange permits trading partners to expand their total output of goods and services as the result of greater specialization in areas where each has a comparative advantage.