Suppose regulators impose a price ceiling on a monopoly. If the price ceiling is set too high
a. deadweight loss will be eliminated.
b. deadweight loss will be reduced.
c. deadweight loss will be increased.
d. deadweight loss will not be affected.
b. deadweight loss will be reduced.
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TheWall Street Journalreports that “hard times aid poultry companies as people eat cheaper fowl.” In the language of economists, this means
A. chicken is an inferior good. B. chicken has a negative substitution effect. C. chicken has a positive substitution effect. D. people’s tastes change during recessions. E. chicken has a positive income effect.
Over the long run, a government's fundamental source of revenues is
A) printing money. B) user fees and taxes. C) exports. D) gold sales.
Refer to the graph below, which shows an aggregate demand. If the economy is at point C and the price level increases by 100, then the wealth, interest-rate, and foreign purchases effects will:
A. Move the economy to point A
B. Move the economy to point B
C. Move the economy to point D
D. Shift the AD curve to the left
The academic ability of students studying to be teachers has
A. increased markedly in recent years. B. remained roughly the same in time. C. decreased markedly, particularly among women, in recent years. D. decreased markedly, particularly among men, in recent years.