To keep the price of gas from rising quickly after a hurricane, the government sometimes institutes price ceilings on the price of gasoline. These price ceilings cause ________ in the gasoline market.
A. surpluses
B. shortages
C. movement of the demand curve
D. movement along the demand curve
Answer: B
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An increase in output due to either a positive supply or demand shock to production will lead to ________
A) an increase in the demand for labor and higher real wages B) a decrease in the demand for labor and higher real wages C) an increase in the demand for labor and lower real wages D) a decrease in the demand for labor and lower real wages
Economic inefficiency exists when
A) P = MR. B) P = MC. C) MR = MC. D) P > MC.
Malthus predicted that:
A. income would eventually grow faster than population, so per capita income would eventually begin to increase. B. population and income would eventually grow at the same rate, so per capita income would increase over time. C. population and income would eventually grow at the same rate, so per capita income would eventually be constant. D. population would eventually grow faster than income, so per capita income would eventually begin to decrease.
Assume the Marshall-Lerner condition holds. Which of the following will cause a reduction in net exports?
A) a reduction in government spending B) a reduction in investment C) an increase in foreign output D) an increase in the real exchange rate E) all of the above