If a city decides to restrict the number of pizza parlors,
A) the price of pizza will increase.
B) pizza parlors will make higher profits.
C) total welfare will decrease.
D) All of the above.
D
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All of the following are true regarding a production quota EXCEPT:
A. a production quota imposes limits on the quantity that individual firms can produce. B. a production quota is a way to raise prices without causing the overproduction that occurs under a price support program. C. a production quota places limitations on supply. D. a production quota does not lead to a deadweight loss.
The purpose of fiscal policy should be to
A. balance the budget to be fiscally responsible. B. balance aggregate supply and aggregate demand. C. keep taxes low to keep voters happy. D. minimize government spending to avoid wasting money.
Suppose an economy consists of 500,000 individuals 16 years and older, 260,000 are employed, and 21,000 are unemployed but actively seeking work. In this example the labor force is:
A. 239,000. B. 260,000. C. 281,000. D. 500,000.
Specializing in the production of a good or service in which one has a comparative advantage enables a country to do all of the following except
A) engage in mutually beneficial trade with other nations. B) increase the variety of products that it can consume with no increase in resources. C) consume a combination of goods that lies outside its own production possibilities frontier. D) produce a combination of goods that lies outside its own production possibilities frontier.