If a price ceiling of $8 were placed in the market in the graph shown:
A. some surplus is transferred from consumer to producer.
B. all consumers are made better off.
C. some surplus is transferred from producer to consumer.
D. all producers are made better off.
Answer: C
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A government decision to privatize a sector of the economy formerly operated by the government is an example of ________ policy.
A. aggregation B. structural C. fiscal D. monetary
When the price of a pizza is quoted in dollars, this is an example of dollars serving as:
A. a store of value. B. a medium of exchange. C. a unit of account. D. barter.
If the marginal revenue product of the fifth worker hired by a firm is $15 and the price of the last unit of output produced is $5, then the marginal product of the fifth worker is
a. 15 units of output if the product market is perfectly competitive b. 3 units of output if the product market is perfectly competitive c. 45 units of output if the product market is perfectly competitive d. 5 units of output if the product producer is a price searcher e. 15 units of output if the product producer is a price searcher
Three of the four events described below might reasonably be expected to shift the demand curve for Tacos to a new position. One would not shift the demand curve. The single exception is:
a. a change in people's tastes with respect to Tacos. b. an increase in the money income of beef consumers. c. a widespread advertising campaign undertaken by the producers of a product competitive with Tacos. d. a fall in the price of Tacos.