If demand increased by 100 units at each price level, and the government set a price ceiling of $40, then there will be
A) A shortage
B) A surplus
C) No shortage or surplus
D) Decrease in supply
Answer: C) No shortage or surplus
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When a Clarke tax is used to finance a public good, each person's tax equals
a. the amount that he is willing to pay for the good. b. the difference between the value he places on the public good and its cost. c. the cost of the public good minus the value that other people claim to receive from it. d. everyone else's tax, with the sum equaling the cost of producing the public good.
Use the following table for Country X to answer the next question. Column 1 of the table is the world-market price of a product, Column 2 is the quantity demanded domestically (Qdd), and Column 3 is the quantity supplied domestically (Qsd). Assume the small-country model is applicable.PriceQddQsd$5.002004004.002503503.003003002.003502501.00400200If Country X opens itself up to international trade and the world-market price of the product is $3, then Country X will
A. neither export nor import the product. B. import some units of the product. C. not produce the product. D. export some units of the product.
An example of an upper-middle income country is
a. India. b. Brazil. c. Indonesia. d. Nigeria.
Increases in the duration of unemployment may
A) reflect a general downturn in economic activity that depresses job openings. B) increase the number of discouraged workers. C) increase the unemployment rate. D) all of the above.