In a free market the quantity demanded will not exceed the quantity supplied of a resource, even if it is undergoing rapid depletion
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Figure 4-11. What is the value of the deadweight loss after the imposition of the price floor?
A) $600 B) $1,800 C) $2,700 D) $3,300
Which of the following is true?
a. In a competitive capital market, private investors have a strong incentive to evaluate projects carefully and allocate their funds toward those projects expected to yield the highest rates of return. b. In a competitive environment, profitable investment projects will tend to increase the wealth of the nation. c. When investment funds are allocated by governments (rather than capital markets), political clout rather than the expected rate of return will generally determine which projects are undertaken. d. All of the above are correct.
If a country has a high level of income, it:
A. has large amounts of physical and human capital. B. must be maintaining all natural resources. C. must be rapidly increasing its income each year. D. must be increasing all its natural resources.
Assume the government sets a minimum price for a particular good below the equilibrium price. How much quantity traded will this lead to?
A. the equilibrium quantity B. below the equilibrium quantity C. above the equilibrium quantity D. There is not sufficient information.