A price ceiling that is set below the equilibrium price will cause:
A. total economic surplus to rise.
B. producer surplus to fall.
C. an increase in demand.
D. quantity supplied to exceed quantity demanded.
Answer: B
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When the nominal interest rate rises, the opportunity cost of holding money
A) rises and people hold more money. B) falls and people hold less money. C) falls and people hold more money. D) rises and people hold less money.
Suppose a monopoly is producing its profit-maximizing output level. Now suppose the government imposes a lump-sum tax on the monopoly, independent of its output. As a result the monopoly's profit will fall
Indicate whether the statement is true or false
A problem with third-party financing of so much of health care is that
A) it reduces the quality of health care received by most people. B) it discourages physicians from getting second opinions and running enough tests to be sure the right procedure is followed. C) it causes the demand for medical services to increase, which causes health care costs to increase. D) it discourages people from relying on the judgments of physicians in making decisions about health care.
Which of the following people would be counted in the labor force?
a. Chou, who lost his job and last looked for work three months ago b. Stephanie, who holds a Ph.D. in history but can only find part-time employment at a fast food restaurant c. Jordan, who would like to work as a stockbroker but is a stay-at-home father d. Steffan, who is a patient in a mental hospital e. Monique, age 90, who is enjoying her retirement in Montana