The surplus created by a price floor will likely be
A) smaller if the good is a necessity.
B) larger if the good is addictive.
C) smaller if the good is a luxury.
D) unaffected by the time that has elapsed since the price ceiling is implemented.
E) None of the above answers is correct.
A
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If an import quota is imposed on imports of shrimp into the United States, U.S. producers ________ and the U.S. economy will ________
A) gain; be unaffected B) gain; lose C) lose; gain D) lose; lose E) gain; gain
According to the adaptive expectations theory, after many years of rising prices, people tend to ignore past experience in predicting the future rate of inflation
a. True b. False Indicate whether the statement is true or false
The recent increases in international trade and new technology have caused demand for ______ workers to ______.
a. all types of; decrease b. low-skilled; increase c. highly-skilled; increase d. all types of; remain constant
The graph above shows the relationship between consumption and income. The ratio LM/PL would be a measure of the:
A. Marginal propensity to consume
B. Marginal propensity to save
C. Average propensity to consume
D. Average propensity to save