Suppose the equilibrium price of bread is $2.00 per loaf. If the government sets a price ceiling of $2.50 per loaf:
a. the price of wheat will rise and a shortage is created
b. the quantity supplied of wheat will increase.
c. there will be no change in the quantity of bread demanded or supplied.
d. there will be a shortage of bread.
c
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The circular flow model demonstrates
A) the role of the government in overseeing the market system. B) the roles played by households and firms in the market system. C) how demand and supply for goods and services are brought into equilibrium. D) how shortages and surpluses are eliminated in a market.
What type of person would you expect to have the shortest indenture?
a. 13 year-old male craftsman who went to New England b. 22 year-old male laborer who went to the West Indies c. 20 year-old male farm worker who went to the South d. 21 year-old male carpenter who worked in the West Indies
In Figure 30.2, the equilibrium wage rate is
A. $20 per hour. B. $12 per hour. C. $24 per hour. D. $16 per hour.
Suppose that there is a negative externality associated with alcohol consumption in the United States. Will the United States be better or worse off if it eliminates all tariffs on alcohol imports?
a. The United States will always be better off when tariffs on imported alcohol are eliminated. b. The United States will always be worse off when tariffs on imported alcohol are eliminated. c. The United States will be no better or worse off when tariffs on imported alcohol are eliminated. d. The United States will be better off only if the private gains from trade exceed the increased social costs of alcohol consumption when tariffs on imported alcohol are eliminated.