If a government imposed price ceiling legally sets the price of beef below market equilibrium, which of the following will most likely happen?
A. The quantity of beef demanded will decrease.
B. The quantity of beef supplied will increase.
C. There will be a surplus of beef.
D. There will be a shortage of beef.
Answer: D
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From 1950 to 2015 the number of people who lived on farms fell from 23 million to fewer than 3 million? Which of the following factors have contributed to this trend?
A) government policies that have increased the cost of living and working on farms B) increases in the cost of farming and a desire for young adults to move to urban areas C) rapid growth in farm production and low income and price elasticities for food products D) slow growth in agricultural productivity and low income elasticities for food products
People who complete college provide a signal to employers about their skills and thus face better employment opportunities than equally skilled high school graduates. This is called:
A. the learning effect of a college education. B. the signaling effect of a college education. C. the discriminatory effect of a college education. D. None of these
A movement from a point inside the production possibilities frontier to a point on the production possibilities frontier represents
A) a tradeoff. B) a free lunch. C) full employment of labor but not capital. D) unemployment of labor but not capital. E) an infinite opportunity cost.
Grown children fawning over an elderly parent in order to try to secure a larger inheritance is an example of
A) rent seeking. B) logrolling. C) rational ignorance. D) public choice.