Which of the following public policies is an example of a price ceiling? A) Support prices for agricultural commodities B) Minimum wage laws C) Rent control program D) all of the above ANSWER C
Date: September 9th, 2020
Use the information in Scenario 4.2. At what price, if any, is the demand for artichokes completely elastic? A) 50 B) 30 C) 10 D) 0 E) none of the above ANSWER A
Date: September 9th, 2020
Although rice is a staple of the Japanese diet, the Japanese government has long restricted the importation of rice into Japan. The result of this import quota is: A) to decrease the price of rice to the Japanese people. B) to decrease the consumer surplus of Japanese rice consumers. C) to decrease the producer surplus […]
Date: September 9th, 2020
The condition that requires MRTS for each input pair to equal the ratio of their marginal costs is known as ________ efficiency, and the condition that requires MRS for each output pair to equal their output price ratio is known as ________ efficiency. A) economic, market B) micro, macro C) cost, revenue D) technical, output […]
Date: September 9th, 2020
Other things being equal, the increase in rents that occurs after rent controls are abolished is smaller when A) the own price elasticity of demand for rental homes is price inelastic. B) the own price elasticity of demand for rental homes is price elastic. C) the own price elasticity of demand for rental homes has […]
Date: September 9th, 2020
Use the information in Scenario 4.2. What is the price elasticity of demand if the price of artichokes is $10? A) 0 B) -0.25 C) -1 D) -4 E) negative infinity ANSWER B
Date: September 9th, 2020
A farmer uses L units of labor and K units of capital to produce Q units of corn using a production function F(K,L). A production plan that uses K’ = L’ = 10 to produce Q’ units of corn where Q’ < F(10, 10 ) is said to be A) technically feasible and efficient. B) […]
Date: September 9th, 2020
If all producers in a market are cartel members, then the demand curve facing the cartel is A) the market demand curve. B) horizontal. C) identical to the demand curve in the dominant firm model. D) identical to the monopolist’s demand curve. ANSWER D
Date: September 9th, 2020
When there are externalities, economic efficiency can be achieved without government intervention A) at no time. B) when the externality affects many people and property rights are not well defined. C) when the externality affects many people and property rights are well defined. D) when the externality affects only a few parties and property rights […]
Date: September 9th, 2020
Why doesn’t the marginal worker hired earn economic rent in a competitive labor market? A) His reservation wage is less than the wage. B) His reservation wage is greater than the wage. C) His reservation wage is equal to the wage. D) He is paid a wage that is lower than the others. ANSWER […]
Date: September 9th, 2020
