A price floor makes prices
A) below the price floor illegal.
B) above the price floor illegal.
C) below the equilibrium price illegal.
D) above the equilibrium price illegal.
E) None of the above answers is correct.
A
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An increase in a perfectly competitive firm's demand for labor could be caused by
A) an increase in the supply of labor. B) a decrease in the market price of the product the firm produces. C) an increase in the amount of human capital among the labor force. D) a decrease in the market wage rate.
In the long run, inflation is caused by
A) aggressive labor unions. B) greedy monopolists. C) growth in the money supply. D) global warming.
In a market economy,
a. the government primarily determines the distribution of resources b. prices determine the allocation of resources c. what society produces is what it produced in the past d. resource costs increase as specialization increases e. absolute advantage is the primary determinant of resource allocation
Refer to the data provided in Table 16.2 below to answer the following question(s).Table 16.2 shows the situation facing two firms, both of which are polluting. Assume that each firm emits 5 units of pollution.Table 16.2Firm AFirm AFirm AFirm BFirm BFirm BReduction of Pollution by Firm AMC of reducing pollution for Firm ATC of reducing pollution for Firm AReduction of Pollution by Firm BMC of reducing pollution for Firm BTC of reducing pollution for Firm B1$1$11$8$82 3 4212203 6103163641020420565153552480Refer to Table 16.2. Suppose the government wants to reduce the total amount of pollution from the current level of 10 to 4. To do this, the government caps each firm's emissions at 2 units and issues 2 permits to each firm. If firms are allowed to trade permits and all possible
trades are made, Firm A will reduce its pollution by a total of ________ units. A. 2 B. 3 C. 4 D. 5