Assume the government sets a minimum price for a particular good below the equilibrium price. How much quantity traded will this lead to?
A. the equilibrium quantity
B. below the equilibrium quantity
C. above the equilibrium quantity
D. There is not sufficient information.
Answer: A
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What would be an example of economies of scope achieved in the automobile insurance industry?
What will be an ideal response?
The Ricardian model of international trade demonstrates that trade can be mutually beneficial. Why, then, do governments restrict imports of some goods?
A) Trade can have significant harmful effects on some segments of a country's economy. B) The Ricardian model is often incorrect in its prediction that trade can be mutually beneficial. C) Import restrictions are the result of trade wars between hostile countries. D) Imports are only restricted when foreign-made goods do not meet domestic standards of quality. E) Restrictions on imports can have significant beneficial effects on domestic consumers.
A free market with externalities ______ social surplus.
Fill in the blank(s) with the appropriate word(s).
For a perfectly competitive firm
A) price is greater than marginal revenue. B) price equals marginal revenue. C) price is less than marginal revenue. D) there is no relationship between price and marginal revenue.