For perfectly price inelastic supply,
A. either supply or demand may set the price.
B. price is solely determined by demand.
C. only a government can set the price.
D. price is solely determined by supply.
Answer: B
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High-skilled workers earn more than low-skilled workers in part because
A) high-skilled workers have higher value of marginal products. B) of government legislation. C) the supply of high-skilled workers is more elastic. D) the demand for high-skilled workers is more elastic.
What best describes the impact of a price ceiling in a competitive market?
a. This benefits all consumers because they are able to obtain the good for a lower price. b. The quantity supplied will be in excess of the quantity demanded. c. It will likely lead to consumers waiting in line for longer periods of time to buy the good. d. It will benefit both consumers and producers of the good.
If the inflation rate is higher than expected, real income is redistributed from lenders to borrowers
a. True b. False
An increase in aggregate demand, say, from an increase in our exports to Canada, results in
a. deflation b. demand-pull inflation c. stagflation d. cost-push inflation e. a recession