Which of the following causes a shortage to become larger?
a. An increase in market price.
b. An increase in supply.
c. A decrease in price.
d. A decrease in demand.
c
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Based on the above table, if the current price level is 100 and the unemployment rate is 4 percent, then the
A) expected inflation rate is 8 percent. B) inflation rate is 2.8 percent. C) expected inflation rate is 2.8 percent. D) inflation rate is 8 percent. E) inflation rate is 108 percent.
One effect of government mandating participation in the auto insurance market is it leads to:
A. higher premiums for all participants. B. lower premiums for all participants. C. the collapse of the market. D. free coverage for some participants.
Which of the following might explain why the government would create a price ceiling for a certain good?
a. The equilibrium price that would result in the market would be considered too high b. The equilibrium price that would result in the market would be considered too low c. The equilibrium quantity that would result in the market would be considered too high d. The equilibrium quantity that would result in the market would be considered too low e. The government never has a reason to create price floors or price ceilings
The figure below shows a situation where the producers of Good X are forming an international cartel. Here, MR = Marginal Revenue, and MC = Marginal Cost. The cartel will set a monopoly price for its output.
By how much would the consumer surplus fall after the formation of the cartel?
A. $5 billion B. $50 billion C. $15 billion D. $20 billion