"Price controls in competitive markets cause shortages" is an example of:
A. the art of economics.
B. positive economics.
C. normative economics.
D. Keynesian economics.
Answer: B
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Suppose the table below describes the demand for a good produced by monopolist.PriceQuantity$101$92$83$74$65$56$47Based on the data in the table, we know the firm should:
A. be able earn an economic profit. B. not produce the seventh unit. C. not produce the fifth unit. D. produce more than 7 units.
When the expenditure approach is used to measure GDP, the major components of GDP are
a. consumption, investment, indirect business taxes, and depreciation. b. employee compensation, rents, interest, self-employment income, and corporate profits. c. employee compensation, corporate profits, depreciation, and indirect business taxes. d. consumption, investment, government consumption and gross investment, and net exports.
Emission controls on automobiles are an example of a
a. corrective tax. b. command-and-control policy to increase social efficiency. c. policy that reduces pollution by allocating resources through market mechanisms. d. policy to reduce congestion on urban freeways.
The market demand for labor will be
A) insensitive to the wage rate in the short run. B) downward sloping. C) the inverse of the market demand for output. D) perfectly inelastic.