Refer to the diagram. A government price support program to aid farmers is best illustrated by:
A. quantity E.
B. price C.
C. price A.
D. price B.
B. price C.
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As long as a bank's stockholders' equity is greater than zero:
A) the stockholders in the bank bear all the risk involved. B) the customers of the bank bear all the risk involved. C) the bank bears all the risk involved. D) bank runs are not possible.
Which of the following is the most likely result of an increase in the minimum wage?
a. An increase in the employment of unskilled workers. b. A decrease in the number of workers seeking minimum wage jobs. c. An increase in the demand for unskilled workers. d. A decrease in the employment of unskilled workers.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:
A. P2 and Y2. B. P1 and Y2. C. P4 and Y2. D. P1 and Y1.
If there is a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production and consumer surplus plus producer surplus is maximized, then
A) maximum deadweight loss occurs. B) economic efficiency is achieved. C) profits are maximized. D) costs are minimized.