The consumer's gain from the imposition of a price ceiling is higher when
A) the own price elasticity of market demand is high and the price elasticity of market supply is high.
B) the own price elasticity of market demand is high and the price elasticity of market supply is low.
C) the own price elasticity of market demand is low and the price elasticity of market supply is high.
D) the own price elasticity of market demand is low and the price elasticity of market supply is low.
D
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You choose to get a flu shot each fall and your roommate chooses not to get a flu shot. For your roommate, you getting a flu shot is a
A) positive externality. B) negative externality. C) transactions cost. D) property right.
In 1970 the CPI was 39, and in 2000 it was 172. A local phone call cost $0.10 in 1970. What is the price of this phone call in 2000 dollars?
A) $1.42 B) $0.39 C) $1.72 D) $0.44 E) $0.23
Full employment is not zero unemployment because
A) there are statistical errors when determining the unemployment rate that cannot be overcome. B) there is "normal" friction in the economy made up of those workers who are between jobs and those new entrants to the labor force. C) there are undocumented workers in the economy who are not counted by the Bureau of Labor Statistics. D) government workers are not counted in the labor force.
Using the above figure, if the government levies a new unit tax in this market, S represents the original supply curve, and St represents the after-tax supply curve, then the revenues that the government collects from imposing this tax is represented on this graph by
A. BAEC. B. OAEG. C. CEF. D. OBCG.