Refer to the accompanying figure. Suppose the dairy lobby convinces the government to impose price controls in this market. If the government requires cheese to be sold for a price of $8 per pound, then, relative to before the price controls, total consumer surplus in the market would:
A. decrease.
B. not change.
C. increase.
D. increase and then decrease.
Answer: A
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Suppose the measured unemployment rate is 6.1% and the true natural rate of unemployment is 5.1%. If the chair of the Fed believes the natural rate of unemployment to be 6.7%, then the chair will
A) stimulate the economy when it should be slowed. B) slow the economy when it should be stimulated. C) stimulate the economy, exactly as called for. D) slow the economy, exactly as called for.
When all costs and benefits in a cost-benefit analysis do not occur at the same point in time, a discount rate is used to _____
a. reduce the future costs and benefits relative to current costs and benefits b. increase future costs and benefits relative to current costs and benefits c. increase current costs relative to future benefits d. reduce future costs relative to current costs
Minority workers are hired less often, for fewer hours, for less desirable jobs, and at lower wages
Indicate whether the statement is true or false
Caseload reduction should be viewed as the sole measure of poverty performance
Indicate whether the statement is true or false