A price ceiling does NOT lead to a deadweight loss if ________
A) the equilibrium market price lies below the price ceiling
B) the equilibrium market price lies above the price ceiling
C) the price elasticity of market demand is greater than 1
D) the price elasticity of market supply is greater than 1
A
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In the figure above, the middle fifth of all households receive what share of all income?
A) 10 percent B) 20 percent C) 30 percent D) 40 percent
A contract
a. is an example of a side payment b. eliminates the possibility of simultaneous exchange c. is worthless unless it refers to a perfectly competitive market d. often requires one party to do something first, and the other party to do something later e. can be enforced through the application of criminal law
The natural rate of unemployment in the United States
a. has consistently equaled 6 percent b. has increased as the federal budget deficit has fallen c. is similar to the natural rate in European countries d. has increased in recent years e. is now unusually high because so many women have entered the labor force
According to the monetarists, which of the following is true?
A. Instability in the money supply is the primary cause of economic instability. B. A reduction in the money supply will cause consumers to increase spending. C. A reduction in the money supply will cause a proportional reduction in wages and prices, leaving output unchanged. D. A rapid growth rate of the money supply will lead to a rapid growth rate of real GDP.