Refer to the information provided in Figure 4.3 below to answer the question(s) that follow.
Figure 4.3Refer to Figure 4.3. If the government will not allow retailers to charge less than $0.50 for a pencil, which of the following will happen?
A. Demand must eventually increase so that the market will come into equilibrium at a price of $0.50.
B. Retailers will have an excess supply of pencils.
C. The market will be in equilibrium at a price of $0.50.
D. Supply must eventually decrease so that the market will come into equilibrium at a price of $0.50.
Answer: B
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Which of the following accurately describes the impact of the rule of law on a country's economic growth rate?
A) Countries where favoritism and bribery are common have stronger rates of growth. B) Countries with a strong rule of law have faster economic growth. C) Countries with a weak rule of law have faster economic growth. D) Countries that enforce property rights through lawsuits have slower economic growth.
The unemployment rate will increase whenever there is
a. an increase in the number of persons classified as unemployed. b. an increase in the number of unemployed persons relative to the size of the labor force. c. an increase in the size of the U.S. population and there is no change in the number of persons classified as employed. d. a reduction in the size of the labor force while the number of unemployed decreases.
A good will have a more elastic demand, the
a. greater the availability of close substitutes. b. more broad the definition of the market. c. shorter the period of time. d. more it is regarded as a necessity.
A total-cost curve shows the relationship between the
a. quantity of an input used and the total cost of production. b. quantity of output produced and the total cost of production. c. total cost of production and profit. d. total cost of production and total revenue.