If a government imposed price ceiling legally sets the price of beef below market equilibrium, which of the following will most likely happen?
a. The quantity of beef demanded will decrease.
b. The quantity of beef supplied will increase.
c. There will be a surplus of beef.
d. There will be a shortage of beef.
d
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Draw a graph of a market in equilibrium. Describe what might cause a change in demand or supply and how this would affect the diagram. Indicate how the equilibrium price and quantity will change.
What will be an ideal response?
What will arise when negative externalities are present in a market?
a) Government will regulate the externalities in the market. b) Private costs will be greater than social costs. c) The market will not be able to reach any equilibrium situation. d) Social costs will be greater than private costs.
According to revealed preference a consumer that chooses to smoke cigarettes:
A. is minimizing their utility given the options available to them. B. derives more happiness from smoking than the goods they could have purchased with that same money. C. derives more utility from smoking than the goods they could have purchased with that same money. D. is behaving irrationally.
Answer the following questions true (T) or false (F)
1. The total cost schedule shows the relationship between different amounts of inputs and the resulting level of output. 2. If, after hiring the 6th worker, a firm's output falls, then the marginal product of the 6th worker is negative. 3. A downward sloping marginal product of labor curve demonstrates the law of diminishing marginal returns.