A black market may occur when
A. the government imposes a price ceiling above the market clearing price.
B. the government does not impose either a price ceiling or a price floor.
C. the government imposes a price floor below the market clearing price.
D. the government imposes a price ceiling below the market clearing price.
Answer: D
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A monopoly:
a. can increase price and increase output at the same time. b. can charge any price it wants and still sell all of its output. c. can sell any output it produces provided it accepts the market price. d. must lower price in order to increase output. e. faces a perfectly elastic demand curve.
Economic profits are earned when
A) price equals marginal cost. B) price equals average variable costs. C) price equals average total costs. D) price is greater than average total costs.
Usury laws are popular with ________.
A. the public and with economists B. the public, but not with economists C. economists, but not with public D. neither the public nor with economists
A drop in the price of oil will result in
A. an increase in the demand for oil. B. a decrease in the demand for oil. C. an increase in the quantity of oil demanded. D. a decrease in the quantity of oil demanded.