Some economists advocate government intervention in a market economy when resource costs for a private producer ________ to society.
A. have no relevant cost
B. do not reflect the full cost
C. are greater than the full cost
D. are equal to the full cost
Answer: B
You might also like to view...
Refer to Price Ceiling. Area B + D represents
The following questions refer to the accompanying diagram which shows the effects of a price ceiling. The initial price and quantity are P0 and Q0, respectively, and the price ceiling is imposed at the price P1. Assume that none of the potential deadweight loss can be avoided.
a. the deadweight loss due to the price ceiling.
b. the fall in consumers' surplus caused by the imposition of the price ceiling.
c. the value of the time and resources spent by consumers to acquire the limited supply.
d. the post-ceiling profits earned by the producers of the good.
Which of the following contributed to the positive output ratio experienced in the 1960s?
A) decreased government spending B) tax decreases C) favorable oil price shocks D) favorable farm price shocks
The wealth effect explains the:
A. downward-sloping aggregate demand curve. B. upward-sloping aggregate demand curve. C. downward-sloping aggregate supply curve. D. upward-sloping aggregate supply curve.
Moving along an elastic portion of a demand curve, a small percentage change in price leads to a larger percentage change in quantity demanded
a. True b. False Indicate whether the statement is true or false