Production quota set below the equilibrium quantity has big effects:
What will be an ideal response?
- A decrease in supply
- A rise in price
- A decrease in marginal cost
- Inefficient underproduction
- An incentive to cheat/overproduce
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If net exports is 100 and the private sector balance is 150, then the government sector balance is
A) -50. B) 50. C) 250. D) 0.
The Keynesian aggregate supply schedule slopes upward because of
a. unstable expectations. b. inflexible wages and prices. c. changes in technology. d. differences between actual and expected price levels.
Markets can efficiently handle irreversible decisions without involvement of government.
Answer the following statement true (T) or false (F)
Because people enjoy the benefits of public goods whether they pay for them or not, people are usually ________ to pay for them. This is known as the free-rider problem, and is intrinsic to ________ goods.
A. unwilling; public B. unwilling; private C. willing; public D. willing; private