An increase in demand, holding supply constant, will tend to cause:
a. Lower prices and a smaller quantity sold
b. Lower prices and a larger quantity sold
c. Higher prices and a larger quantity sold
d. Higher prices and a smaller quantity sold
c. Higher prices and a larger quantity sold
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If the government restricts the selling of corn so that the quantity is less than the equilibrium quantity, then the policy I. creates a deadweight loss. II. decreases total surplus
A) Only I is correct. B) Only II is correct. C) Both I and II are correct. D) Neither I nor II is correct.
Because it takes time for workers to search for a job and for firms to search for new employees, there will always be some workers who are
A) frictionally unemployed. B) structurally unemployed. C) cyclically unemployed. D) seasonally unemployed.
The Matching Pennies game is an example of a:
A) constant-sum game. B) nonconstant sum game. C) game with an equilibrium in dominant strategies. D) none of the above
Suppose all people have the same age-earnings profile and the percent of the population in each age category is the same. The distribution of income at any point in time will be
A) equal because all have the same profile. B) equal because incomes and wealth levels must then be the same. C) unequal because other sources of income will differ. D) unequal because incomes differ by age.