Which of the following can create a deadweight loss?
i. price supports
ii. price floor
iii. price ceiling
A) i only
B) i and iii
C) ii and iii
D) i, ii and iii
E) i and ii
D
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In the above figure, new expectations of booming business conditions and a higher expected profit will
A) shift the demand for loanable funds curve leftward. B) shift the demand for loanable funds curve rightward. C) have no effect on the demand for loanable funds curve. D) make the demand for loanable funds curve become horizontal.
If the entire Social Security payroll tax were paid by the employers _____
a. the workers would be better off b. labor costs would increase c. the price of all non-labor goods would rise d. the employees after-tax wage would be unaffected
The entry of new firms into an industry will very likely
A. shift the industry supply curve to the right. B. cause the market price to fall. C. reduce the profits of existing firms in the industry. D. All of the responses are correct.
Suppose the marginal propensity to consume is 0.80 and equilibrium GDP resulting from a change in investment spending falls by -$500 billion. What must have been the initial change in investment spending
a. $100 billion b. -$100 billion c. $500 billion d. -$500 billion e. -$400 billion