The most likely impact of an effective price floor is:
A. the demand curve will shift to the left.
B. a shortage will develop.
C. a surplus will develop.
D. the supply curve will shift to the right.
Answer: C
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Refer to Figure 7.1. In this case, the property rights belong to
A) Angus. B) Dudley. C) no one. D) both Angus and Dudley.
Bounded rationality suggests that
A) individuals might make "incorrect" decisions because they are unable to consider all possible options. B) individuals would rather have less choice to more choice. C) rational decisions can only be made when choices are restricted. D) individuals are happier when their choices are restricted or "bounded."
In the above table, what is the marginal factor cost of the 4th worker?
A) $16 B) $30 C) $64 D) $22
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.