Let D= demand, S = supply, P = equilibrium price, and Q= equilibrium quantity. What happens in the market for tropical hardwood trees if the governments restrict the amount of forest lands that can be logged?
A) D decreases, S no change, P and Q decrease.
B) S decreases, D no change, P increases, Q decreases.
C) D and S decrease, P and Q increase.
D) D no change, S decreases, P increases, Q increases.
Answer: B
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Suppose Puerto Rico and Hawaii currently have the same production possibilities so that the above figure is the PPF for hotels and consumption goods in the two areas
Hotels are a capital good that,once built, will help produce still more consumption goods. If Puerto Rico produces more hotels than Hawaii, A) Hawaii's PPF will shift outward further than Puerto Rico's PPF. B) Hawaii's PPF will shift inward. C) Puerto Rico's PPF will not shift. D) Puerto Rico's PPF will shift outward further than Hawaii's PPF. E) Puerto Rico's and Hawaii's PPF will shift outward by the same amount.
A minimum wage is a government-imposed price ________ that is designed to be ________ the equilibrium wage rate
A) ceiling; above B) ceiling; below C) floor; above D) floor; below
Which of the following types of unemployment is likely to exist in an economy that is at its potential output level?
a. Cyclical unemployment only b. Structural unemployment only c. Frictional, cyclical, and seasonal unemployment only d. Frictional, seasonal, and structural unemployment only e. Seasonal unemployment only
When the government imposes safety regulations on a particular job or labor market, what is most likely to happen?
A. Utility will increase if workers are able to correctly evaluate working conditions. B. Wages will increase. C. Wages will fall but utility will increase if workers misperceive on-the-job risk. D. Firms that used to offer bad working conditions will be required to shut down. E. Employment will increase.