Price controls on gasoline
A. create a surplus of gasoline.
B. increase consumer surplus.
C. create a shortage of gasoline.
D. increase producer surplus for all producers.
Answer: C
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When a positive externality exists,
A. external benefits are necessarily greater than private benefits. B. social benefits are greater than private benefits. C. social benefits are less than private benefits. D. social benefits equal private benefits. E. none of the above
First-mover advantage is:
A. most advantageous in a prisoner's dilemma-type game. B. very important in one-round sequential games. C. likely to lead to a positive-positive outcome. D. None of these statements is true.
How much does quantity change if MC1 shifts to MC2?
A. Slightly less than one
B. About one
C. Slightly more than one
D. Not at all
At one end of the competitive spectrum is cutthroat competition. At the other end is (the)
A. cartel. B. open collusion. C. covert collusion. D. price leadership.