The services of real estate brokers are provided in a competitive market. If the state Board of Realtors enacts several requirements that limit the number of real estate brokers, then social welfare will most likely
A) not change, but there will be a transfer from consumer to producer.
B) not change, but there will be a transfer from producer to consumer.
C) decrease, although producers are made better off.
D) decrease, although consumers are made better off.
C
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Holding all variables constant but one and assessing the impact of the one variable that has changed is an example of using
A) the ceteris paribus assumption. B) an economic model based on unrealistic assumptions. C) a flawed economic model. D) an untestable proposition.
Which model is used to evaluate the effects of macroeconomic policy such as tax cuts?
A. Aggregate demand and aggregate supply B. Demand and supply C. Game theory D. Circular flow.
When a perfectly competitive firm finds that its market price is below its minimum average variable cost, it will sell
A) the output where marginal revenue equals marginal cost. B) any positive output the entrepreneur decides upon because all of it can be sold. C) nothing at all; the firm shuts down. D) the output where average total cost equals price.
In cases where a common resource is shared by many and technology is well developed,
A. the resource becomes excludable. B. the resource becomes nonrival in consumption. C. overuse is rarely problematic. D. overuse is more likely.