Refer to the above figure. If government sets the maximum legal price of gasoline at $2 per gallon, then the $2 limit acts as
A) a price floor.
B) a price ceiling.
C) an equilibrium price.
D) a just price.
B
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If we look at the federal government budget over the past 40 years we see that
A) most years the government budget has been balanced. B) the government has been running a budget deficit since 1997. C) only occasionally has the budget been in deficit. D) most years the budget balance has not been calculated. E) most years the budget has been in deficit.
What is mechanism design? Give at least two examples
What will be an ideal response?
What are the seven short run cost calculations? How are they related?
In a market characterized by many sellers, assume that transaction costs for both buyers and sellers are both costlessly cut to zero. What will happen to total economic value?
a. Economic value will remain unchanged because the decrease in consumer surplus will offset the increase in producer surplus. b. Economic value will remain unchanged because the decrease in producer surplus will offset the increase in consumer surplus. c. Economic value will certainly increase but its magnitude will depend on the initial transaction costs of the market participants. d. Economic value will certainly decrease but its magnitude will depend on the initial transaction costs of the market participants.