The government sets a price floor for corn which is above the equilibrium price of corn. As a result, ________
A) the corn market will be efficient
B) a deadweight loss will be created
C) a shortage of corn will be created
D) none of the above answers is correct
B
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At the current level of output, a firm's marginal cost equals 16 and marginal revenue equals 10. The firm
A) is producing the profit-maximizing amount. B) should produce more. C) should produce less. D) Not enough information.
In a common-value auction
a. Every bidder knows the exact value of the item being auctioned b. Each bidder only has an estimate of the value of the item c. The value is different for each bidder d. All of the above
Which of the following is a normative macroeconomics statement?
A) The central bank should increase the nation's money supply. B) The increase in the nation's money supply helped push the nation's unemployment rate down in the short run. C) Ford Motor Company's new advertising campaign ended up hurting General Motors' sales. D) The local government ought to spend more on recreational facilities.
Assume South Korea and Vietnam have the same amount of resources. In a given time period, South Korea can produce 100,000 jackets or 1,000,000 shirts. Vietnam can produce 200,000 jackets or 2,000,000 shirts. This means that
A. South Korea has an absolute advantage in jackets. B. South Korea has a comparative advantage in jackets. C. Vietnam has an absolute advantage in both jackets and shirts. D. Vietnam has a comparative advantage in shirts.