A price floor in a perfectly competitive market
a. is efficient
b. is a Pareto improvement
c. is effective only if it is set below the equilibrium price
d. transfers some surplus from consumers to producers
e. transfers some surplus from producers to consumers
D
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Explain how the market for opticians is affected as a result of the development of laser technology which reduces the demand for glasses and contact lenses
In your explanation be sure to show the connection between the market for glasses and contact lenses and the market for opticians.
In the neoclassical growth model, an increase in the saving rate will
a. increase the long-run equilibrium rate of growth in output. b. reduce the long-run equilibrium rate of growth in output. c. leave the long-run equilibrium rate of growth in output unchanged. d. affect the long-run equilibrium rate of growth in output but the direction of the effect is uncertain.
Which of the following statements can be called a productivity-revealing theory?
a. human-capital theory and signaling theory b. human-capital theory but not signaling theory c. signaling theory but not human-capital theory d. neither human-capital theory nor signaling theory
Assume the graph shown shows Bobbi's budget constraint. If hairbands cost $5, then Bobbi's income to spend on these two items must be:
A. $8. B. $40. C. $6. D. Cannot be determined without more information.