Refer to the above figure for the corn market. The government wants to set an effective price support in the corn market. To be effective the price should be set
A. at P2.
B. at P1.
C. at P3.
D. below P1.
Answer: C
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Refer to Figure 11.5. An increase in the level of investment is best illustrated by diagram
A) A. B) B. C) C. D) D.
Which of the following is TRUE of incentives?
A) Different people are motivated by different incentives. B) Money is the only measure of incentives. C) All of the people in a particular nation are motivated by the same incentives. D) In economics, people are assumed to respond to disincentives instead of incentives.
In order to reduce labor supply, a union must be able to
a. do all of the following b. force all employers in the industry to hire only union members c. set wages d. agree to wage concessions e. increase union membership
In the case of positive externalities, social benefits are __________ internal benefits.
A. less than B. equal to C. sometimes greater and sometimes less than D. greater than