Which of the following results from a price ceiling? i. increased search activity ii. surplus iii. black market
A) i only
B) i and iii
C) ii and iii
D) i, ii, and iii
E) ii only
B
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In bargaining between a bureau and the legislature over a budget, the legislature decides to purchase a certain amount of output at certain price and negotiates both simultaneously. This gives the bureau the opportunity to _____
a. minimize their effort b. extract all the legislature's consumer surplus from the bureau's output c. maximize the bureau's profits d. maximize the budget's producer surplus by extracting from the legislature large rents
A fundamental aspect of economics is to
A) ensure that every firm makes a profit. B) analyze how choices are made. C) satisfy all our wants. D) make sure that our resources will always be unlimited.
Clean water is considered a __________ and must be shared by everyone.
A. Collective good B. collective liberty C. collective right D. government right E. political good
Elizabeth just finished a long run. The first glass of water was amazing, the second was good but not as good, and after the third she doesn't want any more. This is an example of what concept?
a. consumer surplus b. law of diminishing marginal utility c. elasticity of demand d. law of equilibrium