If a government enacts a price floor on agricultural products to protect wheat farmers, the result is likely going to be
a. an increase in price with a surplus of wheat.
b. an increase in price with a shortage of wheat.
c. a decrease in price with a surplus of wheat.
d. a decrease in price with a shortage of wheat.
a
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Vinny consumes tacos and chicken wings. To keep his utility constant, he must consume more tacos if he consumes fewer chicken wings. This means that
A) Vinny's indifference curve for tacos and chicken wings must have a negative slope. B) Vinny's marginal rate of substitution must be constant along his indifference curves for tacos and chicken wings. C) Vinny's marginal utility from each good must be constant along his convex indifference curves for tacos and chicken wings. D) the prices Vinny pays for tacos and chicken wings are always the same.
In which of the following situations will the price of medical care decrease with an increase in its demand?
a. When the supply of medical care is the same as the demand for medical care b. When there is an increase in productivity as a result of a technological advancement c. When there is an increase in the price of resources used to produce medical care d. When the supply of medical care increases more than the demand for medical care e. When there is an increase in future profit expectations
If one firm in a perfectly competitive market doubled its output, market
a. demand would double b. demand would increase by 50 percent c. supply would double d. supply would increase by 50 percent e. supply would not be appreciably affected
Which of the following exemplifies regressive taxation?
a. U.S. income tax b. U.S. payroll taxes for Social Security c. Ad valorem tax d. Corporate tax