Which of the following will cause a decrease in producer surplus?
a. the imposition of a binding price ceiling in the market
b. an increase in the number of buyers of the good
c. income increases and buyers consider the good to be normal
d. the price of a complement decreases
a
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Explain three ways in which imposing a quota on imports may reduce a country's overall economic well-being
What will be an ideal response?
While much of New Classical macroeconomics is being refuted by the evidence, at least one part of it may be a permanent legacy to all macroeconomists: the assumption of
A) continuous clearing of all markets. B) rational expectations. C) the unimportance of nominal variables. D) supply shocks as the main cause of business cycles.
The median voter model explanation for the landside victory of Ronald Reagan over Walter Mondale is that _____
a. Reagan was far closer to the median voter than Mondale b. Reagan was far more charismatic than Mondale c. Reagan was able to use the power of incumbency to overwhelm Mondale d. Reagan was able to be more extreme than Mondale and still win
Which of the following is an example of a product sold by an undifferentiated oligopoly?
a. steel b. automobile c. a new drug d. breakfast cereal