Which of the following can occur, when the government imposes a price control on a market?
(a) Excess supply of a good/service.
(b) Excess demand for a good/service.
(c) Price is not at its equilibrium level.
(d) All of the above.
Answer: (d) All of the above.
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Average productivity will fall as long as
A) marginal productivity is falling. B) it exceeds marginal productivity. C) it is less than marginal productivity. D) the number of workers is increasing.
If the economy experiences a strong boom and consumers' incomes sharply rise, local stores with higher prices are ________ to have a(n) ________ in the number of customers.
A) likely; increase B) likely; decrease C) not likely; increase D) not likely; change
When the Lorenz curve lies above the diagonal,
a. the poorest 20 percent of the population receive more than 20 percent of income. b. the richest 20 percent of the population receive more than 20 percent of income. c. everyone receives the same income. d. the country's income has been rising over time. e. it is wrong since it is impossible for the graph to look like this.
If the number of discouraged workers decreases because many of them start to look for work, everything else remaining the same, then the
A) unemployment rate will increase. B) employment-to-population ratio will decrease. C) labour force participation rate will increase. D) labour force participation rate will decrease. E) both A and C.