Summarize the effects of a production quota on the market price and the quantity produced
What will be an ideal response?
A production quota set below the equilibrium quantity raises the price and decreases the quantity.
You might also like to view...
If the production of a good involves positive externalities, ________
A) the market price of the good is higher than its optimal price B) the market price of the good is lower than its optimal price C) the average cost of production of the good in the long run is zero D) the variable cost of production of the good is zero
Real capital income is given by ________
A) MPK × K B) capital share of income × output per unit of capital × capital C) capital share of income × output D) all of the above E) none of the above
If the CPI declines from 200 to 190, prices have declined by
A. 5%. B. 10%. C. 19%. D. 20%.
If a bank has already lent money at fixed interest rates, then during a period of higher-than-expected inflation, it experiences
A. Hyperinflation. B. Deflation. C. Negative real income effects. D. Rising real interest rates.