When there is an excess supply of a product in an unregulated market, the tendency is for
A. price to rise.
B. quantity demanded to decrease.
C. price to decrease.
D. quantity supplied to increase.
Answer: C
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According to the text, studies of 18th century colonial demographics indicate that, compared to Europe,
a. the birthrate in the colonies was lower. b. women in the colonies tended to marry later in life. c. the child mortality rate in the colonies was lower. d. average life expectancy for males in the colonies was lower. e. All of the above.
For a previously-legal good, criminalization will cause
A. demand to become less elastic. B. supply to increase. C. supply to become more elastic. D. price to rise, unambiguously.
A firm uses an efficiency wage scheme to deter workers from shirking, which is detected 10% of the times. Suppose a risk-neutral worker that has a reservation wage of $500. The industry ongoing wage is $1000. What is the efficiency wage paid by this firm?
A) $6,000 B) $5,000 C) $1,500 D) $2,000
Refer to the information provided in Figure 24.4 below to answer the question(s) that follow.
Figure 24.4Refer to Figure 24.4. What is the value of Point B?
A. $7,000 billion B. $6,000 billion C. $3,500 billion D. cannot be determined from the given information