As compared to the market clearing price, the total amount of consumer surplus and producer surplus is
A) greater for a government-imposed price floor that is higher than that market clearing price.
B) greater for a government-imposed price ceiling that is lower than that market clearing price.
C) the same as a government-imposed price floor that is higher than that market clearing price.
D) smaller for a government-imposed price ceiling that is lower than that market clearing price.
D
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Which of the following is true about an increase of a per-unit tax in a goods market where the good is quasilinear assuming neither supply nor demand is perfectly inelastic:
A. The more price elastic either demand or supply, the lower will be tax revenue. B. The more price elastic either demand or supply, the greater will be deadweight loss. C. The higher the tax rate, the greater the fraction of deadweight loss over revenue. D. Both (a) and (b) E. Both (b) and (c) F. Both (a) and (c) G. All of the above H. None of the above
In the above figure, a rent ceiling of $500 per month would
A) not affect the equilibrium quantity. B) create a shortage. C) raise the rent and cause a surplus. D) reduce the rent and create a surplus.
Which of the following variables will not cause the market supply curve of labor to shift?
A) a change in the labor participation rate of women B) an increase in the number of people between the ages of 16 and 65 C) increases in population D) a favorable change in consumer tastes
What is the only factor that can continually increase in such a way as to bring about continued increases in aggregate demand, and thus bring about continued inflation? Give two reasons why government purchases cannot continually increase, and so cannot be the cause of continued inflation