University A sets tuition at the equilibrium level based on price and then imposes entrance requirements in the form of minimum high school GPA and SAT scores. Enrollment at this school will likely be
A) at the equilibrium level.
B) below the equilibrium level because of the use of non-price rationing devices.
C) above the equilibrium level because of the combination of price and the use of non-price rationing devices.
D) none of the above
B
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The four largest firms in an industry account for the following value of industry sales: 12 percent, 8 percent, 5 percent and 4 percent. Calculate the four-firm concentration ratio. Would this industry be regarded as competitive or concentrated?
What will be an ideal response?
If, beginning from a competitive labor market, some workers form a union and negotiate a higher rate for themselves, which of the following is likely to happen? a. Competition will force the wage rate in the non-union sector to increase to the level of the union wage. b. The marginal product of labor curve will increase in the unionized sector
c. Employment will move from the union to the non-union sector over time. d. Employment will increase in the union sector because workers will be attracted by the higher union wage.
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.
Public choice theory assumes that those involved in the public sector are generally motivated by
A) public spirit. B) altruism. C) the desire to achieve allocative efficiency. D) the same factors involved in the private sector. E) a and b