The presence of a price control in a market for a good or service usually is an indication that
a. an insufficient quantity of the good or service was being produced in that market to meet the public's need.
b. the usual forces of supply and demand were not able to establish an equilibrium price in that market.
c. policymakers believed that the price that prevailed in that market in the absence of price controls was unfair to buyers or sellers.
d. policymakers correctly believed that price controls would generate no inequities of their own once imposed.
c
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In Figure 16.2, according to supply-side theorists, an increase in mandatory employee benefits would result in a
A. Rightward shift in the Phillips curve. B. Movement from point A to point B. C. Leftward shift in the Phillips curve. D. Movement from point B to point A.
Suppose labor supply can be described as ES = 0.1w ? 1000 where w is yearly salary. What yearly salary must be paid to encourage 6000 workers to accept jobs?
A. $60,000 B. $30,000 C. $40,000 D. $50,000 E. $70,000
If the absolute price elasticity of demand is 0.1, a 10 percent decrease in the price will cause
A. the quantity demanded to increase by 10 percent. B. the quantity demanded to increase by 100 percent. C. the quantity demanded to increase by 0.1 percent. D. the quantity demanded to increase by 1 percent.
How do public goods differ from common pool resources? Explain
What will be an ideal response?