Suppose the government has declared beer to be an illegal substance and has imposed equal penalties on any person caught buying a beer and on any person caught selling a beer
Using the above figure, in which CBL is the cost of breaking the law, what is the equilibrium price and quantity with this new law in effect? A) $5 per quart and 300 quarts of beer
B) $3 per quart and 500 quarts of beer
C) $3 per quart and 100 quarts of beer
D) $1 per quart and 300 quarts of beer
C
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As a large number of students graduate from college, which category of unemployment would increase?
a. Seasonal unemployment b. Structural unemployment c. Frictional unemployment d. Cyclical unemployment e. They will have no effect on unemployment
When is the U.S. economy at full employment?
a. When there is no cyclical unemployment b. When there is no structural unemployment c. When there is no full employment d. When there is no seasonal unemployment e. When there is no frictional unemployment
The profit outcome achieved by setting MC = MR is the same as that achieved by setting TR = TC
Indicate whether the statement is true or false
Figure 11-2
Which graph in Figure 11-2 best reflects a Keynesian's view of the short-run impact of an increase in the personal income tax rate?
a.
1
b.
2
c.
3
d.
4