The demand curve facing a firm acts as a constraint by
a. shifting to the left and right as suppliers vary their quantities
b. showing the maximum price that could be charged to sell a specific output level
c. showing the minimum quantity of output that a firm needs to produce at a specific price
d. limiting sales to those who are first in line when the product is distributed
e. relating the actions and decisions of buyers and sellers in the market
B
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The effectiveness with which markets bring buyers and sellers together is called
A) pricing efficiency. B) operating efficiency. C) the theory of efficient markets. D) bid-asked spread efficiency.
If the minimum wage is set at a level below the equilibrium wage it:
A. would be a nonbinding minimum wage. B. will probably affect government jobs more than any other job market. C. would interfere with the market reaching equilibrium. D. will have a large effect.
According to institutionally-focused economists:
A. there is no relationship between PQ and MV because Q isn't constant. B. there is no relationship between PQ and MV because V is constant. C. the direction of causation goes from PQ to MV. D. the direction of causation goes from MV to PQ.
One World View article titled "Paying to Pollute" reports that the price of a marketable pollution permit in Europe for a ton of carbon dioxide is about $32. The principal advantage of pollution permits is to
A. Eliminate social costs. B. Increase government involvement in pollution control. C. Reduce pollution to zero. D. Reduce the costs of pollution control.