Price controls in Venezuela resulted in a thriving black market in many goods. The black market arose because the price controls that were implemented by the Venezuelan government were ________ which resulted in a ________ of products
A) price floors; surplus
B) price floors; shortage
C) price ceilings; surplus
D) price ceilings; shortage
Answer: D
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Scarcity is a problem:
a. because human wants are unlimited while resources are limited. b. only in industrialized economies. c. of the poor, but not the rich. d. measured by the amount of goods available.
The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. What is the marginal social benefit from the 300th dozen doughnuts each day?
A) $10.00 per dozen B) $8.00 per dozen C) $6.00 per dozen D) $4.00 per dozen
Jan heads to the store to buy burgers for dinner. Seeing a sale on hot dogs, she buys those instead. The change in her demand for burgers is due to which factor?
A. Preferences B. Income C. Prices of related goods D. Number of buyers
If we allow interpersonal comparisons of utility, and the law of diminishing marginal utility holds, then what can we reasonably suppose about the marginal utility of Bill Gates' millionth dollar?
a. It is less than the marginal utility of your hundredth dollar. b. It is more than the marginal utility of your hundredth dollar. c. It is equal to the marginal utility of your hundredth dollar. d. It is equal to zero. e. It yields higher satisfaction than your hundredth dollar.