All of the following are problems associated with price ceilings except
a. chronic excess demand
b. an eventual decline in the number of suppliers
c. the need to use ration coupons to purchase the good
d. chronic excess supply
e. landlords failing to maintain rent-controlled properties adequately
d. chronic excess supply
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Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that when the firm hires 4 workers, the firm produces 50 units of output. If the fixed cost of production is $4, the variable cost per unit of labor is $20, and the marginal product of labor for the fifth unit of labor is 2,
what is the average total cost of production when the firm hires 5 workers? a. $2.00 b. $20.00 c. $20.80 d. $22.80
Diversifying
a. increases the standard deviation of the value of a portfolio indicating its risk has increased. b. increases the standard deviation of the value of a portfolio indicating its risk has decreased. c. decreases the standard deviation of the value of a portfolio indicating its risk has increased. d. decreases the standard deviation of the value of a portfolio indicating its risk has decreased.
As the price of cookies increases, firms that produce cookies will:
A. increase the supply of cookies. B. increase the quantity of cookies supplied. C. decrease the quantity of cookies supplied. D. decrease the supply of cookies.
Should the government wish to lower the price of gasoline to the consumer, one approach might be
A. to take action to shift the supply curve of gasoline to the left. B. to reduce the gasoline excise tax. C. to raise the gasoline excise tax. D. to lower taxes on automobiles.