Supply-side market failures occur when:
A. the demand and supply curves don't reflect consumers' full willingness to pay for a good or
service.
B. the demand and supply curves don't reflect the full cost of producing a good or service.
C. government regulates production of a good or service.
D. a good or service is not supplied because no one wants it.
Answer: B
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Suppose the equilibrium price of movie tickets is $10. If the supply curve for movies shifts ________, the equilibrium price will ________
A) rightward; decrease B) leftward; decrease C) rightward; increase D) leftward; not change E) rightward; not change
On the eve of the American Revolution, the majority of colonists were naturally born in the colonies rather than immigrants from elsewhere
Indicate whether the statement is true or false
The divergence between money costs and opportunity costs is the least in which of the following situations?
a. China uses millions of otherwise unemployable workers to build roads with picks and shovels. b. Wilhelm, an engineer at Exxon, is drafted-his army salary is $2,000 per month. c. Colleen quits her job to stay at home and raise her children. d. A university, using a private contractor, builds a field house on land it purchased at full market value from a local farmer.
A reserve requirement of 5 percent implies a potential money deposit multiplier of
a. 5. b. 10. c. 20. d. 25.