A government currently uses price controls to hold down the price of zinc, an exhaustible resource. If price controls are removed,
a. production of zinc will probably fall.
b. zinc mines with high marginal cost of production will probably stop producing.
c. consumers of zinc will probably want substitutes for zinc.
d. income will probably be redistributed from zinc producers to zinc consumers.
c
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In the money market, a decrease in money demand will:
A) result in a rightward shift in the money demand curve increasing interest rates. B) result in a rightward shift in the money demand curve decreasing interest rates. C) result in a leftward shift in the money demand curve increasing interest rates. D) result in a leftward shift in the money demand curve decreasing interest rates.
Government expenditures includes all of the following except
A) federal defense spending. B) federal nondefense spending. C) state and local spending. D) transfers.
The kinked demand theory attempts to explain why an oligopolistic firm:
a. has relatively large advertising expenditures. b. fails to invest in research and development (R and D). c. infrequently changes its price. d. engages in excessive brand proliferation.
A single individual performing all of the steps involved in the production of a commodity is usually less productive compared to one who performs only one task
Indicate whether the statement is true or false