The welfare loss of monopoly is also called
a. converted consumer surplus
b. deadweight loss
c. economic profit under monopoly
d. producer surplus
e. contestable profit
B
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If the government imposes a price ceiling below the market equilibrium price, which of the following will result?
a. There will be a surplus of the good. b. The quantity demanded will exceed the quantity supplied. c. The quantity supplied will exceed the quantity demanded. d. The demand curve will shift to the left.
If a bank keeps some of its excess reserves, the actual money multiplier
a. increases b. stays the same c. goes to zero d. decreases e. increases, then decreases
All of the following are reasons why the wages of workers and the prices of inputs rise more slowly than the prices of final goods and services except
A) unions are successful in pushing up wages. B) firms are often slow to adjust wages. C) contracts make prices and wages sticky. D) menu costs make some prices sticky.
The government imposes a maximum price on apartments that is above the equilibrium price. You accurately predict that
A. the law will create a surplus of apartments. B. landlords are less likely to do routine maintenance work in the apartments. C. renters will find that landlords start offering to furnish the apartments. D. the law will have no economic impact.