If a market is initially operating competitively and then the government imposes a price floor above the equilibrium price,
a. there will be more resources will be devoted to the production of this product
b. quantity demanded will rise
c. producer surplus will fall in the short run
d. imposition of the floor is probably a positive-sum game
e. consumer surplus will fall
E
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With ATMs, it is possible to retrieve cash from the bank at any time. One hundred years ago, one could only get cash from the bank during business hours, say, 9 am to 3 pm. The present availability of 24-hour service has arisen because:
A. flexibility was not valued 100 years ago. B. government forced banks to become more convenient. C. it was impossible to provide 24-hour service 100 years ago. D. the cost of providing 24-hour service is much lower today.
If the market equilibrium value of the nominal exchange rate equals 0.20 U.S. dollars per franc, but the franc is officially fixed at 0.25 U.S. dollars per franc, then the franc exchange rate is ________ and to maintain this exchange rate there will be ________ in the government's stock of international reserves.
A. undervalued; a net decline B. overvalued; a net increase C. undervalued; a net increase D. overvalued; a net decline
A movement from one point of a demand curve to another is properly called a change in
A) demand. B) quantity demanded. C) tastes and preferences. D) the availability of substitutes.
________ dictates the lowest wage that firms may pay for labor
A) The black-market wage B) A maximum wage requirement C) A minimum wage law D) A price-ceiling wage