Consider a market for fish whose market demand and market supply for fish are specified as Qd = 300 - 2.5 P and Qs = - 20 + 1.5 P respectively. The government decides to impose a price ceiling of $50 per ton. The possible black market price after the ceiling is:
a. Shortage of 120 tons of fish
b. Shortage of 175 tons of fish
c. Surplus of 120 tons of fish
d. There would be no market distortion
Answer: a. Shortage of 120 tons of fish
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When an infinite value is placed on human life, policymakers who rely on cost-benefit analysis
a. are forced to pursue any project in which a single human life is saved. b. are likely to make decisions that optimally allocate society's scarce resources. c. would not pursue any public project that would not save human life. d. would be forced to rely on private markets to provide public goods.
The U.N.'s Millennium Aid Goal focuses on aid in the form of
A. Redistributions within poor countries. B. Money from nongovernmental organizations. C. Money from rich donor countries. D. A loan from the United Nations.
When the prevailing market wage is above equilibrium, we say:
A. the quantity of labor demanded is more than the quantity supplied. B. there is a surplus of labor. C. there is no unemployment. D. All of these are true.
?Maryann and Don want to open their own deli. To do so, Maryann must give up her job, where she earns $20,000 per year, and Don must give up his part-time job, where he earns $10,000 per year. They must liquidate their money market fund, which earns $1,000 interest annually. The rent on the building is $10,000 per year, and the expenses of such necessities as utilities, corned beef, and pickles are $35,000 annually. The minimum amount of revenue per year that would make it worthwhile, financially, for Maryann and Don to run the deli is _____.
a. ?$10,000 b. ?$31,000 c. ?$35,000 d. ?$45,000 e. ?$76,000