A price ceiling of $8 placed on the market in the graph shown:
A. is non-binding, and does not affect the market.
B. is binding, and causes a shortage.
C. is binding, and causes a surplus.
D. is non-binding, and does not prevent the market from reaching equilibrium.
B. is binding, and causes a shortage.
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Suppose the Busy Bee Café is the monopoly producer of hamburgers in Hugo, Oklahoma. The above figure represents the demand, marginal revenue, and marginal cost curves for this establishment. If the Busy Bee produces 40 hamburgers per hour, then
A) marginal revenue will exceed marginal cost. B) profit will be maximized. C) marginal revenue will be negative. D) marginal revenue will be maximized. E) both the marginal revenue and the price will be negative.
Bank capital can best be described as:
A) funds contributed by shareholder purchasers of a bank's stock plus the accumulated retaining earnings B) the accumulated amount of reserves held by a bank C) the location of most of the major banks of a country D) another name for bank assets
A worker who loses his or her job as a consequence of a decline in aggregate demand in the economy is experiencing:
a. disguised unemployment. b. underemployment. c. cyclical unemployment. d. frictional unemployment. e. seasonal unemployment.
Recall the Application about the effect of global warming on economic growth to answer the following question(s). According to this Application, over time, as economies adapt to higher temperatures:
A. approximately half the decline in per capita income disappears. B. approximately half the increase in per capita income disappears. C. per capita income does not seem to change. D. real income begins to increase and per capita income begins to decrease.