One disadvantage of government subsidies over price controls is that subsidies
a. prevent the attainment of equilibrium in the markets in which they are imposed.
b. make higher taxes necessary.
c. are always unfair to those with low incomes.
d. cause unemployment.
b
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Refer to the figure below. If demand shifts from D1 to D2, and at the same time, supply shifts from S1 to S2, then according to the figure: 
A. the equilibrium quantity will increase and the equilibrium price will increase. B. the equilibrium quantity will decrease and the equilibrium price will decrease. C. the equilibrium quantity will decrease and the equilibrium price will increase. D. the equilibrium quantity will increase and the equilibrium price will decrease.
Your friend does not understand the benefits of globalization. Outline for your friend the positive economic aspects of globalization
What will be an ideal response?
If the government levies a $5 tax per MP3 player on buyers of MP3 players, then the price paid by buyers of MP3 players would likely
a. increase by more than $5. b. increase by exactly $5. c. increase by less than $5. d. decrease.
As a result of a fire, a small business owner loses some of her computers and other equipment. If the property of diminishing returns applies to all factors of production, she should expect to see
a. an increase in the marginal productivity of her remaining capital and an increase in the marginal productivity of her labor. b. an increase in the marginal productivity of her remaining capital and a decrease in the marginal productivity of her labor. c. a decrease in the marginal productivity of her remaining capital and an increase in the marginal productivity of her labor. d. a decrease in the marginal productivity of her remaining capital and a decrease in the marginal productivity of her labor.