According to this Application, the policies used by the European Union to support the agricultural sectors of its member countries created excess supply. Excess supply can be generated if a government establishes a
A) price ceiling above the market equilibrium price.
B) price ceiling below the market equilibrium price.
C) price floor above the market equilibrium price.
D) price floor below the market equilibrium price.
C
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If the social cost is greater than the private cost in a particular market, the private equilibrium will be at a quantity:
A. equal to the socially optimal level. B. less than the socially optimal level. C. greater than the socially optimal level. D. greater than or less than the socially optimum level, depending on the size of the external costs.
The maximum contaminant level goals (MCLGs)
a. define the pollutant level at which no known or expected health effects arise, allowing for a margin of safety b. are enforceable standards c. are unrelated to the maximum contaminant levels (MCLs) d. all of the above
On the Internet you find the following offers for opening an online account. Which of them is the best offer if you have $2,000 to save for two years?
a. an interest rate of 5 percent, with the bank charging you a $15 processing fee at the time you open your account b. an interest rate of 3.5 percent, with the bank giving you a $35 bonus to open your account c. an interest rate of 4 percent, with the bank giving you a $20 bonus at the time you open your account d. an interest rate of 4.5 percent, with no processing fee and no bonus
The theory of public choice
A. Explains the selfless pursuit of public goals by public servants. B. Examines why the public rejects so many bond referendums. C. Examines how a policy of laissez faire works to allocate resources. D. Emphasizes the self-interest of decision makers and voters.