An effective government imposed price ceiling will result
A) in a surplus on the market.
B) in a shortage on the market.
C) in additional revenue for the government.
D) in prices for the product falling in the future.
Answer: B
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During 2005-2006 Europe imported more than $70 million worth of U.S. long-grain rice. Who gains from this trade?
A) European rice consumers gain from trade. B) There is no gain from trade. C) European rice producers gain from trade. D) American rice consumers gain from trade.
The situation in which a firm charges different prices for different blocks of output is referred to as:
A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) fourth-degree price discrimination.
The determinants of labor demand include:
A. culture and other opportunities. B. supply of other factors and output prices. C. culture and technology. D. culture and population.
The level of detail in an economic model
a. is as close as possible to the level of detail in reality b. depends on the purpose of the model c. is as complex as possible d. is the same regardless of the purpose of the model e. is as complex as possible to accomplish its purpose