An example of a price ceiling would be the government setting the price of sugar
A. at the equilibrium market price.
B. above the equilibrium market price.
C. below the equilibrium market price.
D. none of the above
Answer: C
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If a person has an absolute advantage in some activity, she must have a comparative advantage in that activity as well
Indicate whether the statement is true or false
Supply-side economists argued that, given existing tax laws, the high inflation of the 1970s
a. lowered the effective tax rate on corporate income. b. did not have any effect on the aggregate supply curve. c. raised the effective tax rate on corporate income. d. may have raised but probably lowered the effective tax rate on corporate income. e. both b and c.
Monopoly is a prime example of a market failure that leaves potential Pareto improvements unexploited. This is demonstrated by the fact that
a. monopolies produce public goods rather than private goods b. monopolies substitute excludability for rivalry c. monopolies substitute rivalry for excludability d. the price in a monopolized market is less than the marginal cost of production e. the price in a monopolized market exceeds the marginal cost of production
In Techland, from 1980 to 2010, holding technology and human capital fixed, increasing physical capital per worker from $25,000 to $100,000 would have led to a doubling of real GDP per worker, from $40,000 to $80,000. However, not only did physical capital per worker increase from $25,000 to $100,000, but technological progress shifted the productivity curve upward so that real GDP per worker actually increased from $40,000 to $320,000.Look at the scenario Technological Progress and Productivity Growth in Techland. What share of the growth rate of real GDP per capita was attributable to higher total factor productivity?
A. 2.0% B. 5% C. 8.75% D. 6.5%