If the government removes a binding price ceiling in a market, then the producer surplus in that market will increase
a. True
b. False
Indicate whether the statement is true or false
True
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An efficient allocation of resources is reached in the figure above when output equals
A) 1 million. B) 2 million. C) 3 million. D) 4 million.
For the federal deficit to be lowered
A) the Federal Reserve must reduce the money supply. B) the federal government must decrease its spending and increase net exports. C) the federal government's expenditures must be lower than its tax revenue. D) the Federal Reserve must raise interest rates and lower the required reserve ratio.
The public interest theory of government regulation is optimistic
Indicate whether the statement is true or false
Suppose there are only three firms in a market. The largest firm has sales of $500 million, the second-largest has sales of $300 million, and the smallest has sales of $200 million. The market share of the largest firm is
A. 40 percent. B. 50 percent. C. 100 percent. D. 60 percent.