A black market can emerge for a good if ________
A) the good is taxed heavily
B) there is an excess supply of a good
C) the consumption of the good is subsidized
D) the production of the good is subsidized
A
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Laws that make it illegal for firms to conspire to raise prices or reduce production are known as
A. antimonopoly laws B. all of these answers C. anti-collusion laws D. pro-competition laws E. antitrust laws
If the intended aim of the price floor set in the graph shown was a net increase in the well-being of producers, then normative analysis would conclude that:
A. the policy was ineffective, since surplus gained by producers through higher prices is greater than the surplus they lost through deadweight loss. B. there is no "right" conclusion to be reached in a normative sense, since people have different opinions concerning what constitutes a better outcome. C. the policy was effective, since surplus gained by producers through higher prices is greater than the surplus lost by consumers through higher prices. D. the policy was effective, since surplus gained by producers through higher prices is greater than the surplus they lost through deadweight loss.
In a market with asymmetric information, a good is said to have hidden characteristics if:
A) the consumption of the good imposes an additional cost on the society. B) the production of the good generates additional benefits to the society. C) the seller offers secret discounts to some buyers. D) the buyer or the seller observes something about the good that the other does not.
The Patient Protection and Affordable Care Act will require
a. health insurers to provide coverage to applicants regardless of prior health conditions. b. all Americans to purchase an approved health insurance policy or pay a tax-penalty for failing to do so. c. employers with more than 50 full-time employees to either provide approved health insurance for their employees or pay a fine for the failure to do so. d. all of the above.