If order to be relevant, the price floor must be
A. above equilibrium.
B. at equilibrium.
C. within 10% of equilibrium (either way).
D. below equilibrium.
Answer: A
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Given the data in Table 6.1, the labor force participation rate of Metropolis is approximately
A) 96 percent. B) 91 percent. C) 83 percent. D) 78 percent.
Economists view pollution as an economic problem that arises because:
a. private enterprise always minimizes the amount of pollution produced. b. profitable firms rarely pollute. c. as the economy grows, the level of pollution declines. d. firms that pollute do not pay the full social cost of producing their output.
If the price of inputs falls and the government deficit rises:
a. Aggregate demand falls, and aggregate supply rises. b. Aggregate demand and aggregate supply rise. c. Neither aggregate demand nor aggregate supply change. d. None of the above.
Other things equal, if the price of a key resource used to produce product X falls, the:
A. product supply curve of X will shift to the left. B. product demand curve of X will shift to the left. C. product demand curve of X will shift to the right. D. product supply curve of X will shift to the right.