Governments may choose to intervene in a market in an attempt to:
A. discourage the consumption of certain goods.
B. encourage the consumption of certain goods.
C. redistribute surplus.
D. All of these are true.
Answer: D
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Which of the following is true of the natural rate of unemployment?
A) The actual rate of unemployment is higher than the natural rate of unemployment during a recession. B) The natural rate of unemployment excludes long-term structural unemployment. C) The natural rate of unemployment is the socially optimal or desirable rate of unemployment. D) The natural rate of unemployment excludes frictional unemployment.
Explain why the production possibilities frontier bows outward
What will be an ideal response?
Which term refers to a legally established minimum price that firms may charge?
A) a tariff B) a price ceiling C) a subsidy D) a price floor
Which of the following statements is FALSE?
A) If there is an increase in the demand for a product, consumers want to buy more of the product at each and every possible price. B) A decrease in demand shifts the demand curve leftward toward the origin, while a decrease in quantity demanded involves a movement upward along a particular demand curve. C) If the price of a good rises, quantity demanded of the good decreases and the demand curve shifts toward the origin as long as supply is static. D) A change in the demand for a product is caused by factors other than changes in the product's price.