Which of the following will likely occur when price floors in agriculture are implemented?
A) Quantity supplied will exceed quantity demanded.
B) Quantity demanded will exceed quantity supplied.
C) Farmland will be underutilized.
D) Supply will decrease.
Ans: A) Quantity supplied will exceed quantity demanded.
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The following list of characteristics are true of the pharmaceutical industry, except one.
a. Low variable cost b. Virtually guaranteed profits when the product is introduced c. High fixed cost d. Exclusive rights to market and sell patented products e. Segmentable markets
For a monopsonist, the supply of labor facing the firm is:
A. an insignificant portion of the market supply. B. perfectly horizontal. C. identical to the supply curve facing the market. D. the summation of each firm's demand for labor.
Other things equal, which of the following might shift the demand curve for gasoline to the left?
A. The development of a low-cost electric automobile B. An increase in the price of train and air transportation C. A large decline in the price of automobiles D. The discovery of vast new tar sands oil reserves in Canada
When the economy is producing at full capacity, the aggregate supply curve becomes
A. horizontal. B. upward sloping. C. downward sloping. D. vertical.