When a price ceiling which had been set below equilibrium price is removed, what happens next?
A. quantity supplied rises.
B. quantity demanded falls.
C. price rises.
D. all of the choices.
D. all of the choices.
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The real value of any variable is its nominal value:
A. adjusted for inflation. B. holding the base constant. C. adjusting for income. D. holding the basket constant.
Deepening of human capital in the U.S. economy focuses: a. more on additional education and training than on a higher average level of work experience. b. more on a higher average level of work experience than on additional education and training. c. more on the reduction of the cost of capital than on additional training
d. more on increasing the stock of physical capital than on higher education.
Which of the following is not correct?
a. Antitrust laws may prevent mergers that would actually raise social welfare. b. Public ownership is the most common public policy toward monopolies in the United States. c. Regulation is a common strategy for a natural monopoly. d. Sometimes the best public policy toward a monopoly may be to do nothing.
The George Stigler quote, "...the degree of ‘market failure' for the American economy is much smaller than the ‘political failure' arising from the imperfections of economic policies ...". illustrates the advantage of which type of public policy toward monopolies?
a. antitrust laws b. regulation c. public ownership d. "do nothing"