One way to ensure all producers benefit from a price floor is to:
A. give a government guarantee to buy all surplus.
B. ration a certain quantity per consumer.
C. ration a certain quantity per producer .
D. All of these are examples of ensuring all producers benefit using non-price methods.
A. give a government guarantee to buy all surplus.
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A policy maker who is concerned that the unemployment rate is too high would ________.
A. use tariffs to reduce imports and increase net exports B. increase the minimum wage C. decrease government spending D. increase taxes
Over long time horizons, the more independent a country's central bank is,
A) the lower the inflation that country experiences. B) the better chance that country has of experiencing hyperinflation. C) the higher the country's unemployment rate tends to be. D) the more politically unstable the country becomes.
People will tend to "internalize externalities" when
A) responsibility for the consequences of actions is more clearly assigned to the actors. B) spillover costs and benefits become more common and widespread. C) they calculate more carefully the marginal costs and marginal benefits of their decisions. D) they feel less empathy for others.
Refer to the accompanying table below. The average benefit of 4 units of activity is:Units of ActivityTotal CostTotal Benefit0$0$01$2$122$6$223$12$304$20$365$30$406$42$427$56$43
A. $10 B. $9 C. $4 D. $5