Price ceilings cause
a. Some suppliers to drop out of the market
b. A decrease in the total production in the market
c. The creation of black markets
d. All the above
d
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In the United States, ________ percent of all firms are sole proprietorships
A) 4 B) 14 C) 72 D) 82
Here are three possible definitions of "Compensating Variation": I. the amount a person would be willing to pay to avoid a price increase. II. the amount of additional income needed to allow a person to restore his or her utility back to its initial level after it has been reduced by a price increase. III. the amount of income that a person who experienced a price increase would be willing to pay
to see the price return to its earlier level. Which of these definitions is (are) correct? a. Only I b. I and II c. II and III d. Only III
Warrantees do not contribute to market power
Indicate whether the statement is true or false
If expectations are rational, the difference between the actual rate of inflation and the expected rate of inflation will be zero
a. True b. False Indicate whether the statement is true or false