A government currently uses price controls to hold down the price of zinc, an exhaustible resource. If price controls are removed,

A. production of zinc will probably fall.
B. zinc mines with high marginal cost of production will probably stop producing.
C. consumers of zinc will probably want substitutes for zinc.
D. income will probably be redistributed from zinc producers to zinc consumers.


Answer: C

Economics

You might also like to view...

When the aggregate demand curve shifts rightward, the price level ________ and the unemployment rate ________

A) decreases; increases B) decreases; decreases C) increases; decreases D) does not change; does not change E) increases; increases

Economics

Public policy responses to monopolies:

A. ease the effect of monopoly power on consumers. B. aim to break up existing monopolies. C. prevent new monopolies from forming. D. All of these statements are true.

Economics

The classical view of the demand for money incorporated a more complex set of motivations than the Keynesian view

Indicate whether the statement is true or false

Economics

Which of the following taxes would result in the greatest tax burden for buyers?

a. A tax on pharmaceuticals b. A tax on luxury cars c. A tax on movie tickets d. A tax on restaurant meals

Economics