Suppose the market supply curve is upward sloping and market demand is perfectly inelastic. If the market price is held above the equilibrium level, which of the following statements about the resulting outcome is not true?
A) The decrease in consumer surplus is fully captured by the producers.
B) There will be an excess quantity supplied.
C) Quantity demanded will remain the same.
D) Quantity demanded will decline.
D
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Which of the following is the best example of how the question of "what goods and services to produce?" is answered by the command process?
A) government subsidies for windmill energy production B) laws regarding equal opportunity in employment C) government allowance for the deduction of interest payments on private mortgages D) government regulations concerning the dumping of hazardous waste
When employers sort employment applications into high-ability and low-ability people based on whether or not the applicant has a college degree (irrespective of major), they are providing evidence in support of the
a. human-capital theory of education. b. signaling theory of education. c. principle that education reduces marginal productivity. d. principle that most business owners are more interested in discriminating against a particular group than in maximizing profits.
(Consider This) Violin strings made from sheep intestines were first called "catgut" because:
A. at the time it was thought to be extremely unlucky to kill sheep. B. the inventor wanted to establish a legally protected brand name. C. the inventor wanted to preserve his trade secret. D. the inventor thought that "catgut" would sound less offensive to buyers than "sheep intestines."
Suppose Jack and Kate are at the town fair and are choosing which game to play. The first game has a bag with four marbles in it-1 red marble and 3 blue ones. The player draws one marble from the bag; if it is red, they win $20 and if it is blue, they win $1. The second game has a bag with 10 marbles in it-1 red, 4 blue, and 5 green. The player draws one marble from the bag; if it is red, they win $20; if it is blue, they win $5; and if it is green, they win $1. Both games cost $5 to play. If Jack only cares about expected value, and not risk, he should decide to play a game if:
A. the expected value of the payoff is higher than the expected value of the payoff in the other game. B. the expected value of the payoff is lower than the price to play the game. C. the expected value of the payoff is higher than the price to play the game. D. the expected value of the payoff is double the price to play the game.