If the price floor of a market is raised, which of the following would happen?
a. The consumer surplus would increase, the producer surplus would decrease and the dead weight loss would decrease
b. The consumer surplus would decrease, the producer surplus would decrease and the dead weight loss would increase
c. The consumer surplus, the producer surplus and the dead weight loss would all decrease
d. The consumer surplus, the producer surplus and the dead weight loss would all increase
e. The consumer surplus would decrease, the producer surplus would increase and the dead weight loss would increase
E
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Suppose that a tire factory produces $825,000 of output and causes $70,000 worth of pollution as a result of production. The tire factory's official contribution to GDP would be ________ and its overall contribution to society would be ________
A) $825,000; $755,000 B) $825,000; $895,000 C) $895,000; $825,000 D) $755,000; $825,000
Recall the Application. When applying the Taylor Rule to the decade of 2000, economist John Taylor found that past experience showed that from 2001 to 2004, the Fed should have ________ interest rates instead of ________ interest rates
A) raised; not changing B) not changed; lowering C) lowered; raising D) raised; lowering
Lauren runs a chili restaurant in San Francisco. Her total revenue last year was $110,000. The rent on her restaurant was $48,000, her labor costs were $42,000, and her materials, food and other variable costs were $20,000
Lauren could have worked as a biologist and earned $50,000 per year. An economist calculates her implicit costs as A) $150,000. B) $63,000. C) $50,000. D) $110,000. E) $0 because Lauren did not work as a biologist.
An economy using money is more efficient that a barter economy because the use of money reduces the time spent searching for trading partners with a coincidence of wants and therefore more time can be spent producing goods and services
a. True b. False Indicate whether the statement is true or false