A government-imposed price floor above the market price of milk would increase consumers' expenditures on milk only if
a. demand is elastic
b. supply is inelastic
c. demand falls
d. demand is inelastic
e. supply is unit elastic
D
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As the number of firms in an oligopoly market
a. decreases, the price charged by firms likely decreases. b. decreases, the market approaches the competitive market outcome. c. increases, the market approaches the competitive market outcome. d. increases, the market approaches the monopoly outcome.
Figure 9-2
The economy depicted in is
a.
operating at less than full employment.
b.
operating at more than full employment.
c.
in short-run equilibrium but not long-run equilibrium.
d.
in long-run equilibrium.
Suppose the government abolished the minimum wage law and the law that requires union wage rates to be paid on all government contract jobs. We would expect to see
A. a decline in the natural rate of unemployment. B. the duration of unemployment to increase. C. an increase in claims for unemployment benefits. D. a recession.
The fact that nominal GDP has risen faster than real GDP:
A. suggests that the base year of the GDP price index has been shifted. B. tells us nothing about what has happened to the price level. C. suggests that the general price level has fallen. D. suggests that the general price level has risen.