Is it possible for sellers to benefit more than consumers from a subsidy to buyers?
A. Producers can never benefit more than buyers from a subsidy to buyers.
B. Yes, if the supply curve is relatively more elastic than the demand curve.
C. Yes, if the sellers need it more.
D. Yes, if the supply curve is relatively less elastic than the demand curve.
Answer: B
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Technological change that affects the marginal products of high-skilled and low-skilled workers differently is called ________ technological change.
A. marginal-productivity B. capital-labor C. high-low D. skill-biased
Opportunity cost is best defined as the:
a. sum of all alternatives given up when a choice is made. b. money spent once a choice is made. c. highest-valued alternative given up when a choice is made. d. cost of a good minus the satisfaction obtained from consuming it. e. cost of capital resources used in the production of additional capital.
Which of the following statements about interest rate determination is most accurate?
a. In both the long run and the short run, the interest rate is determined in the market for loanable funds. b. In both the long run and the short run, the interest rate is determined in the money market. c. In the short run the interest rate is determined in the market for loanable funds, and in the long run it is are determined in the money market. d. In the short run the interest rate is determined in the money market, and in the long run it is determined in the market for loanable funds. e. The interest rate is determined through an interaction between the money market and the loanable funds market.
The United States typically experiences a large surplus of milk annually. This is caused by
a. a price ceiling in the market. b. not enough demand for milk. c. a price floor in the market. d. overproduction of milk by the cows.