Which of the following is the most likely explanation for the imposition of a price floor on the market for corn?
a. Policymakers have studied the effects of the price floor carefully, and they recognize that the price floor is advantageous for society as a whole.
b. Buyers and sellers of corn have agreed that the price floor is good for both of them and have therefore pressured policy makers into imposing the price floor.
c. Buyers of corn, recognizing that the price floor is good for them, have pressured policymakers into imposing the price floor.
d. Sellers of corn, recognizing that the price floor is good for them, have pressured policymakers into imposing the price floor.
d
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Why would it be a mistake to treat opportunity costs and explicit monetary costs as identical?
A. Because sometimes the market does not function well. B. Because opportunity costs are different for different goods. C. Because there are trade-offs involved in any decision. D. Because of existence of efficient markets.
At present, what is the approximate natural rate of unemployment in the United States?
a. 4.5 percent b. 5.5 percent c. 7 percent d. 8.5 percent e. 2.5 percent
How would the discovery of a previously unknown large reserve of oil affect the short-run aggregate supply curve and why? What other change could have the same effect?
What will be an ideal response?
Which of the following statements is true?
A. Derived demand for labor depends on the demand for the other inputs into production. B. Unions can either increase demand or decrease the supply of labor. C. Investment in human capital is expected to decrease the demand for those workers because there will be a greater number of qualified workers available. D. Unions can effectively increase wages by lobbying for looser immigration laws.