In the 1970s, the government placed price ceilings on gasoline prices. A shortage of gasoline occurred, and long lines formed at the pumps. Some gas stations required that in addition to paying the price on the pump you had to buy a blank will. The action of having to purchase the will in order to purchase gas is known as
A. a surplus.
B. the price system.
C. a price support.
D. a black market.
Answer: D
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Refer to Scenario 5.8. The value to Icarus Airlines of complete information is
A) $40 million. B) $90 million. C) $115 million. D) $120 million. E) $125 million.
If the American Medical Association lobbied successfully to eliminate licensing laws for physicians,
a. physicians' salaries would increase b. the supply curve of physicians would shift to the left c. physicians' salaries would decrease d. the supply curve of physicians would become more inelastic e. the supply curve of physicians would become more elastic
The nice thing about a pollution tax is that it
a. eliminates pollution b. forces cleanup to occur c. is imposed only on the market with the externality d. creates new property rights e. creates positive externalities to compenstate for negative externalities
If a country begins to import more of a commodity, one can normally expect the price of the commodity to
a. remain unchanged in that nation. b. rise and then fall below where it was originally. c. rise in that nation. d. drop in that nation.