Some people advocate price ceilings in certain markets because they seek to
A. expand the total of consumer and producer surplus which the market generates.
B. enhance both efficiency and distribution goals with the price ceiling.
C. redistribute welfare from the producer to the consumer even if overall welfare is sacrificed.
D. redistribute welfare from the consumer to the producer even if welfare is sacrificed.
Answer: C
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Other things constant, if domestic consumers purchase fewer foreign goods at each level of GDP, in the short run
A. foreign countries' GDP will rise. B. GDP will fall. C. GDP will rise. D. there will be no change in GDP in this country.
The benefits paid by the largest pension program in the United States are: a. not adjusted for changes in the price level
b. adjusted for changes in the price level. c. revised every five years. d. adjusted for changes in the nominal rate of interest. e. adjusted for changes in the real rate of interest.
Frictional unemployment is a variation in unemployment caused by:
a. the economy moving from expansion to recession or from recession to expansion. b. people changing jobs within the economy. c. people lacking skills valued by the labor market. d. seasonal changes in the weather such as the temperature getting hotter.
The expenditure schedule will shift upward when
a. net exports decrease. b. net exports increase. c. total imports increase. d. total exports decrease.