Suppose the equilibrium price of cotton is $100 per ton. A price support set at ________ than $100 per ton ________
A) less; increases producer surplus
B) less; increases consumer surplus
C) more; increases consumer surplus
D) more; decreases marginal cost
E) more; creates a surplus that the government must buy
E
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During the 1987-88 expansion period interest rates in the United States rose as did the rate of investment in the economy. These facts suggest
A) the simple accelerator effect and the effects of higher interest rates complemented each other to raise output growth. B) the simple accelerator effect and the effects of lower interest rates complemented each other to lower output growth. C) the effects of the accelerator were greater than those of increased interest rates. D) the effects of the accelerator were smaller than those of increased interest rates.
A production quota program:
A. places limitations on the quantity that individual consumers can purchase. B. is a way to raise prices without causing the overproduction that occurs under a price support program. C. is like a subsidy in that it reduces the price that buyers pay for a good. D. places minimums on the quantity that individual firms must produce.
The opportunity cost of an activity includes the value of:
A. the least-best alternative that must be foregone. B. the chosen activity minus the value of the next-best alternative. C. the next-best alternative that must be foregone. D. all of the alternatives that must be forgone.
In 2011, there were about _____ million union members in the United States
A. 8.4 B. 11.8 C. 14.8 D. 15.7