When will a shortage occur in a market?
a. When the actual price is lower than the equilibrium price
b. When quantity supplied is greater than the equilibrium quantity
c. When the quantity that consumers are willing and able to purchase decreases
d. When the quantity available at zero price is insufficient to meet demand
e. When a price floor is set in the market
a
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One economist says that raising taxes on gas would be in the social interest. What does this economist mean?
A) Higher taxes on gas would benefit society as a whole. B) Raising taxes on gas would benefit most of the people. C) Higher taxes on gas would benefit everyone. D) Both answers A and C are correct.
Explain what a proportional tax is and provide an example
What will be an ideal response?
The recent Enron and Tyco scandals are an example of
A) the free-rider problem. B) the adverse selection problem. C) the principal-agent problem. D) the "lemons problem."
In the steady state, real GDP per worker ________, and real GDP per effective worker ________
A) will grow; will grow B) will grow; is constant C) is constant; will grow D) is constant; is constant