An unintended consequence of price ceilings is:
A. the loss of surplus always outweighs the benefits of the policy.
B. the producers increase the quality of the goods sold.
C. non-price rationing must occur, and can lead to bribes.
D. the transfer of surplus from producer to consumer rarely is recognized.
Answer: C
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If you are using a 95% confidence interval and the absolute value of the t-statistic is larger than the critical value, then
A) we accept the null hypothesis at a 95% confidence level. B) we reject the null hypothesis at a 95% confidence level. C) we will be wrong less than 5% of the time if we accept the null hypothesis. D) we will be wrong 95% of the time if we reject the null hypothesis.
Policymakers' attempts to use the Phillips curve to reduce the unemployment rate below the natural rate
A. will be successful if monetary policy is used. B. will be unsuccessful if monetary policy is used since monetary policy leads to higher prices. C. will be unsuccessful since workers' expectations adjust to attempts to reduce unemployment below the natural rate. D. will be successful since the Phillips curve shows the relationship between the inflation rate and the unemployment rate.
If the dollar price of yen rises, then:
A. the yen price of dollars also rises. B. the dollar depreciates relative to the yen. C. the yen depreciates relative to the dollar. D. the dollar will buy fewer U.S. goods.
Environmental Protection Agency (EPA) regulations tend to go through many stages of review and approval before they are implemented. Not only do many regulators have to approve a new regulation, but comments and reviews from industry and conservation organizations are typical. Explain these complicated procedures in light of the theories of supply and demand for regulation.
What will be an ideal response?