A rent ceiling creates a shortage. As a result, which of the following occurs?
A) only a loss of consumer surplus for tenants
B) only a loss of producer surplus for landlords
C) a loss of both consumer and producer surplus
D) a gain of both consumer and producer surplus
C
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Which of the following causes the aggregate production function to shift up?
A) An increase in capital stock B) A decrease in the productivity of workers C) An improvement in technology D) An increase in the total efficiency units of labor
If the demand for a good is perfectly elastic, then the demand curve is horizontal
Indicate whether the statement is true or false
Health insurance was not an important policy issues prior to 1940 because _____
a. less than 10 percent of the U.S. population had health insurance b. health care was so cheap c. of the widespread ability of local charitable hospitals d. most individuals were covered by veteran health benefits
If a firm in a perfectly competitive market sells 100 units of output and total revenues are $500, which of the following statements are true? (i) Marginal revenue equals $5. (ii) Average revenue equals $5. (iii) Price equals $5
a. (i) only b. (iii) only c. (i) and (ii) only d. (i), (ii), and (iii)