A price ceiling creates a ________ when it is set ________.
Fill in the blank(s) with the appropriate word(s).
Answer: shortage; below the equilibrium price
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If a yet-to-be released video game receives a positive review in a popular gaming magazine,
A) the demand curve is expected to shift to the right. B) the demand curve is expected to shift to the left. C) the demand curve is not expected to change. D) for those who read the review, demand shifts to the left. For those who don't read the review, demand shifts to the right.
A professional basketball players' union negotiates a contract that dramatically increases all players' salaries. How would this influence the opportunity cost for a player who was considering giving up basketball to pursue a career in broadcasting?
a. It would not affect the opportunity cost of playing basketball or of broadcasting. b. It would increase the opportunity cost of continuing to play professional basketball. c. It would cause the production possibilities frontier to become convex. d. It would increase the opportunity cost of becoming a broadcaster. e. It should have no bearing on the player's decision from an economic standpoint.
Answer the following statement(s) true (T) or false (F)
1. Marginal willingness to pay rises as more is consumed. 2. More consumers create a smoother market demand curve. 3. Marginal benefits are benefits consumers receive from consuming as much of a product as possible. 4. A rise in price increases consumer surplus. 5. Producer surplus measures the net gains in economic well-being received by sellers.
There are no costs associated with inflation if the inflation rate is unanticipated.
Answer the following statement true (T) or false (F)