Consider a market characterized by the following inverse demand and supply functions: PX = 10 - 2QX and PX = 2 + 2QX. Compute the surplus consumers receive when an $8 per unit price floor is imposed on the market.
A. $1.
B. $5.
C. $0.
D. $3.
Answer: A
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Assume the demand for sugar decreases and the supply of sugar increases. Which of the following outcomes is certain to occur?
A. The equilibrium quantity of sugar will rise. B. The equilibrium price of sugar will rise. C. The equilibrium quantity of sugar will fall. D. The equilibrium price of sugar will fall.
Data for an economy show that the unemployment rate is 6 percent, the participation rate is 60 percent, and 200 million people 16 years or older are not in the labor force. How many people are in the working-age population in this economy?
A. 333 million B. 500 million C. 1.20 billion D. 800 million
Which of the following costs can be positive when output is zero?
A) average variable cost B) total variable cost C) marginal cost D) total fixed cost E) None of the above because when output is zero there are no costs.
The quantity theory of money implies that if the money stock were to double, the price level would
a. fall by one half. b. rise, but only slightly. c. also double. d. be unchanged. e. all of the above.