Which of the following occurs if firms are able to restrict output and raise price?
a. resources are misallocated
b. wealth is shifted from consumers to government
c. wealth is shifted from producers to consumers
d. P = MC
e. P = minimum LRAC
A
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Use the supply and demand curves depicted in following graph for a competitive market to answer the question below.
If the government imposed a price ceiling of $15, then buyers will be intending to buy ________, but they will be able to legally buy ________.
A. 24 units, more than 24 units B. 30 units, 24 units C. 36 units, 24 units D. 36 units, 30 units
Very Technical is a firm that sells computing equipment. It costs Very Technical $40 for each order of computer monitors and the variable cost of placing an order is $5 per monitor. If Very Technical sells 2,000 computer monitors a year and they order 50 monitors, what is the annual ordering cost of the monitors?
A) $122,500 B) $116,000 C) $95,500 D) $87,500
Robert Summers and Alan Heston published data for 130 countries that used purchasing power parity, rather than market exchange rates, to compare GDP across countries. As a result, measured per capita incomes of developing countries rose relative to per capita incomes in developed countries. This is most likely because:
A. nonmarket activity is less extensive in developing countries than in developed countries. B. prices of standard goods in developing countries are generally higher than those in developed countries. C. nonmarket activity is more extensive in developing countries than in developed countries. D. prices of standard goods in developing countries are generally lower than those in developed countries.
Considering an economy with a current trade deficit and considering only the direct effect on income, an expansionary monetary policy tends to:
A. decrease the exchange rate and decrease the trade deficit. B. decrease the exchange rate and increase the trade deficit. C. increase the exchange rate and increase the trade deficit. D. increase the exchange rate and decrease the trade deficit.