Refer to the graph shown. With an effective price floor at $8, the effect is an implicit tax on:
A. consumers equal to $30.
B. consumers equal to $50.
C. suppliers equal to $50.
D. suppliers equal to $30.
Answer: A
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Explain the relationship among the capital stock, gross investment, net investment, and depreciation
What will be an ideal response?
A shock that could trigger an expansion is a
a. large increase in oil prices b. financial crisis c. sudden cutback in military spending d. large decrease in oil prices e. sudden increase in the interest rate
Suppose a union successfully negotiates for its members a wage rate that is above the competitive wage rate, then
A. there will be an excess supply of labor. B. there will be a surplus of jobs. C. antitrust laws become effective. D. there will be downward pressure on the wage rate until equilibrium is established.
Related to the Economics in Practice on page 155: Suppose you own a truck and use it to deliver merchandise to retailers and hire a driver to make such deliveries. At higher rates of speed the truck gets fewer miles per gallon of gas. Holding all else constant, as the price of gasoline continues to rise
A. you will instruct your driver to drive slower. B. you will ask your driver to change their driving in any way. C. you will make more deliveries to cover the increasing cost of fuel. D. you will instruct your driver to drive faster.