The above figure shows the market for winter jackets. In an effort to keep the nation warm, the president places a price ceiling of $100 in the market for winter jackets. Which of the following statements is true?
A) After taking account of the resources lost in search, consumer surplus increases when the price ceiling is in place.
B) There will be a surplus of jackets.
C) Because the price of a jacket is lowered, consumers end up buying more jackets with the price ceiling than without it.
D) Producer surplus decreases if there is a price ceiling.
E) The quantity supplied of jackets is greater that quantity demanded when there is a price ceiling.
D
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If Pete enjoys his first pancake of the morning much more than his fifth pancake of the morning, he is exhibiting
A) utility maximizing behavior. B) diminishing marginal utility. C) irrational behavior. D) diminishing total utility.
The marginal productivity theory of income distribution was developed by
A) William Stanley Jevons. B) George Akerlof. C) John Bates Clark. D) Edward Lazear.
Using the income approach, the largest component in the calculation of GDP is:
A. net interest. B. rental income. C. profits. D. compensation of employees.
The purpose of the Supplemental Security Income program is
A. to provide a guaranteed minimum income for all Americans. B. to provide a minimum income for the aged, blind, and the disabled. C. to provide a minimum income for all households with children. D. to supplement Social Security for the elderly with medical problems.