Refer to Figure 6.6, which shows a market for taxi medallions. If the number of taxi licenses is reduced from Q2 to Q1:
A. the gain in consumer surplus equals the loss in producer surplus.
B. the gain in producer surplus equals the loss in consumer surplus.
C. the gain in consumer surplus is greater than the loss in producer surplus.
D. the gain in producer surplus is smaller than the loss in consumer surplus.
Answer: D
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?Recently, there has been an increase in the market demand for products of firms in manufacturing industries. The production of many of these products requires the skills of welders. Because welding is a dirty and dangerous job compared with other? occupations, in recent years fewer people have sought employment as welders.
Which of the following is true regarding the per person income of the world during the past 1000 years
a. The world's income per person has approximately doubled during the past 1000 years and most of that growth has occurred since 1900. b. The world's income per person changed very little during the 800 years prior to 1813, but it has increased by nearly tenfold during the past 200 years. c. The world's income per person has grown steadily during the past 1000 years. d. The world's per person income grew at an annual rate of more than 2 percent during 1000-1813, but the annual growth rate has declined as the population increased during the past 200 years.
The "natural" rate of unemployment is the unemployment rate toward which the economy gravitates in the
a. short run, and the natural rate is the socially optimal rate of unemployment. b. long run, and the natural rate is the socially optimal rate of unemployment. c. short run, and the natural rate is not necessarily the socially optimal rate of unemployment. d. long run, and the natural rate is not necessarily the socially optimal rate of unemployment.
If countries that imported goods and services from the United States recovered from recession, we would expect that U.S. net exports would
a) fall, making aggregate-demand curve shift to the right. b) rise, making aggregate-demand curve shift to the left. c) rise, making aggregate-demand curve shift to the right. d) fall, making aggregate-demand curve shift to the left.