Refer to Price Ceiling. The price ceiling creates a deadweight loss equal to
The following questions refer to the accompanying diagram which shows the effects of a price ceiling. The initial price and quantity are P0 and Q0, respectively, and the price ceiling is imposed at the price P1. Assume that none of the potential deadweight loss can be avoided.
a. area A + H.
b. area B + C + D + E.
c. area B + D.
d. area C + E.
b. area B + C + D + E.
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If the BLS included all marginally attached workers as being unemployed, the ________ would be __________
A. unemployment rate; higher B. labor force; unchanged C. labor force participation rate; lower D. unemployment rate; lower
Consider Gary's utility function: U(X,Y) = 5 XY, where X and Y are two goods
If the individual consumed 10 units of X and received 250 units of utility, how many units of Y must the individual consume? Would a market basket of X = 15 and Y = 3 be preferred to the above combination? Explain.
Since 1930, U.S. agriculture employment
a. has decreased while agricultural output has increased. b. has increased while agricultural output also has increased. c. has decreased while agricultural output also has decreased. d. has increased while agricultural output has decreased.
Fee-for-service insurance
A. requires you pay for services before they are performed. B. has more meddlesome bureaucrats than an HMO. C. is typically more expensive than an HMO covering the same illnesses. D. does not allow patients to pick their own doctor.