A market in which a price-controlled good is sold at an illegally high price is known as
A) a flooring market.
B) a ceiling market.
C) a black market.
D) a supermarket.
C
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Industries often lobby against the removal of regulations because
a. the regulations often enforce a de facto cartel agreement. b. their customers would be made worse off without government-proscribed standards. c. the largest firms could then dominate the industry. d. deregulation would cause higher entry prices for new firms.
Some economists argue that the short-run Phillips curve is not vertical, and that monetary policy can be effective in the short run. Which one of the following is not one of the reasons for this skepticism?
A) Individuals may not be able to use information of Fed Policy to make a reliable forecast of inflation. B) Empirical evidence shows workers and firms have rational expectations. C) Contracts with workers and suppliers may hinder firms' abilities to adjust to price changes. D) Wages and prices may not adjust rapidly enough to keep the short-run Phillips curve vertical.
Consider the labor market for computer programmers. During the late 1990s, the value of the marginal product of all computer programmers increased dramatically. Holding all else equal, the equilibrium wage in the labor market for computer programmers
a. increased. b. decreased. c. did not change. d. It is not possible to determine the equilibrium wage.
Capital, as economists use the term,
A. is the money the firm spends to hire resources. B. refers to things that have already been produced that are in turn used to produce other goods and services. C. is money the firm raises from selling stock. D. refers to the process by which resources are transformed into useful forms.