"Ceteris paribus" assumption means
A) the role of rational self-interest in the economy.
B) that nothing else changes except the variables under consideration.
C) relying on real-world data in evaluating the usefulness of a model.
D) analysis that is strictly limited to making purely positive statements.
Answer: B
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The above figure shows the market for DVDs. The government decides that all citizens deserve to watch affordable DVDs so a price ceiling of $12 per DVD is placed on DVDs. After this price ceiling is in effect, producer surplus equals ________
A) $900,000 B) $400,000 C) $200,000 D) $100,000 E) $1,800,000
A decrease in matching efficiency
A) can never happen. B) is due to a change in the productivity of firms. C) is not related to sectoral shocks. D) can explain the shift in the Beveridge curve.
Which of the following components, when combined, is most likely to lead to discrimination by landlords with prejudiced views?
a. uncontrolled rent; few possible renters b. uncontrolled rent; many possible renters c. rent-controlled apartment; many possible renters d. rent-controlled apartment; few possible renters
What factors determine the vertical shape of the aggregate supply curve in the long-run? Explain.
What will be an ideal response?