Suppose the government imposed a minimum price in a market and a reporter for a local newspaper wrote a story on it. The headline on the story would read:
a. Government Action Calls For Ration Coupons
b. Rationing Price Replaces Market Price
c. Price Ceiling Replaces Equilibrium Price
d. Price Floor Replaces Equilibrium Price
e. Equilibrium Price Lowered
D
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Which of the following is a common resource?
a. Golden retrievers b. Jersey cows c. Domestic cats d. Panda bears
Suppose the goal of a union is to maximize the total income of all workers it represents. In this case it will probably aim for a wage at which the elasticity of demand for workers is
a. 0. b. infinite. c. 1. d. ranging from 2 to 5.
The term "bilateral monopoly" refers to market situations in which
a. there are two participants on the selling side. b. there are two participants on the buying side. c. there is a monopoly on the selling side and a monopsony on the buying side. d. a monopoly has evaded antitrust laws.
If the Fed pursues expansionary monetary policy then
A) the money supply will decrease, interest rates will rise and GDP will fall. B) the money supply will decrease, interest rates will fall and GDP will fall. C) the money supply will increase, interest rates will rise and GDP will rise. D) the money supply will increase, interest rates will fall and GDP will rise.