If the government regulates the price a monopoly can charge, and the price ceiling is set below what the competitive market price would be, then
A) a shortage will exist.
B) a surplus will exist.
C) producer surplus is maximized.
D) consumer surplus is maximized.
A
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Javier can earn $80,000 a year working as a firefighter, or $78,000 a year working as a police officer. The probability of death from working as a firefighter is 1/2,000, and the probability of death from working as a police officer is 1/4,000
Using the compensating differential approach and the above information, what is the value of Javier's life?
The increase in redistributive programs as a percentage of the government's budget has led to _____
a. a greater potential payoff for special interests b. a welfare bureaucracy dependent upon the existence of the redistributive program c. a concomitant rise in private charity d. a and b e. b and c
Automatic stabilizers "lean against the prevailing wind" of the business cycle because:
a. wages are controlled by the minimum wage law. b. federal expenditures and tax revenues change as the level of real GDP changes. c. the spending and tax multipliers are constant. d. they include the power of special interests.
In an inflationary atmosphere that everyone anticipates will persist, lenders will
A. desire a higher nominal interest rate to protect against the inflation. B. tend to see the real rate of interest increase, particularly if the inflation is unforeseen. C. desire a lower nominal interest rate to increase the real rate. D. have the real rate of interest guaranteed by the Federal Reserve Board.