Hospitals announce that there are not enough nurses available to keep them fully staffed. Economically speaking, what does this announcement mean?
A) The market wage for trained nurses is currently above the equilibrium wage.
B) There is currently a surplus of nurses in this market.
C) The market wage for nurses will eventually rise to the market clearing wage.
D) The market will adjust very rapidly to correct this imbalance because anyone can be a nurse without any training.
Answer: C
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Under what conditions will the political process provide an inefficient amount of a public good?
What will be an ideal response?
The supply of movie tickets at one theater's box office for this Saturday's 4:30 show of a new movie is
A) perfectly elastic until all seats are filled. B) unit elastic. C) perfectly inelastic. D) elastic.
Both The Wealth of Nations and the Declaration of Independence share the point of view that
a. every person is entitled to life, liberty, and the pursuit of happiness. b. individuals are best left to their own devices without the government guiding their actions. c. the government plays a central role in organizing a market economy. d. because of human nature a strong legal system is necessary for a market system to survive.
Which of the following is NOT an example of price discrimination?
A) student discount at a local movie theater B) breakfast cereal makers sending coupons to select buyers C) Pharmaceutical companies charge customers living in wealthier countries higher prices than for identical drugs in poorer nations. D) a hard cover book selling for more than the same book in electronic form