Suppose the market demand function in a certain market where Q is measured in thousands of units is Qd = 20 - 2.5P, and the market supply function is Qs = 2.5P - 7.5. How much deadweight loss would there be in this market if the quantity bought and sold was 5,000 units?
A. $0.63
B. $62.50
C. $625
D. $6,250
B. $62.50
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The government imposing a minimum wage is an example of an attempt to:
A. correct a market failure. B. redistribute surplus in a market. C. encourage the consumption of inferior goods. D. discourage the consumption of inferior goods.
Monetary policy includes changes in government spending
a. True b. False Indicate whether the statement is true or false
The statement that "the rich get richer, and the poor get poorer" is supported by evidence of an expanding wage gap between high-skill and low-skill workers
a. True b. False Indicate whether the statement is true or false
If the Real GDP increases from one year to the next, we could conclude the country experienced:
A. definite inflation and may have experienced an increase in output. B. a definite increase in output and may have experienced an increase in prices. C. inflation and no change in output. D. an increase in output and no change in prices.