If a city government enacts a maximum price on rent,
A) quantity supplied will decrease.
B) quantity demanded will increase.
C) allocational problems develop.
D) All of the above.
D
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A particular good is not scarce when
A) everyone is able to purchase as much of the good as they wish to purchase. B) it is available in large enough quantities to meet everyone's needs. C) no one must sacrifice anything to obtain more of the good. D) there is a surplus of the good.
Why might a producer practice price discrimination?
A) to maximize profits B) to maximize quantity demanded C) to make its products more affordable to those with low incomes D) to maximize economic efficiency
You turn to the Treasury bond market page of a newspaper and look under the column headed "Bid" and see that it says, "125:8" this indicates that
A. the price that the buyer is willing to pay for this bond is $125.08. B. the price that the buyer is willing to pay for this bond is $1,252.50. C. the price that the seller is willing to sell this bond for is $125.80. D. the price that the seller is willing to sell this bond for is $125.08.
If there are external costs in production and firms do not have to account for these costs, then firms will produce
A. at the efficient level. B. an output level that is below the efficient level. C. an output level that is either above or below the efficient level. D. an output level that is above the efficient level.