If the demand curve for a good is horizontal and the price is positive, then a leftward shift of the supply curve results in A) a price of zero. B) an increase in price. C) a decrease in price. D) no change in price. ANSWER D
Date: September 9th, 2020
Import quotas on steel tend to result in higher quantities of steel being sold at lower prices than would be observed in the absence of a quota. Indicate whether the statement is true or false ANSWER False. The opposite is true. Quotas restrict the supply curve. This reduces quantity and raises price.
Date: September 9th, 2020
If a large number of people decide to major in economics, the supply and demand model has little to say about the future wages of economists. Indicate whether the statement is true or false ANSWER False. If more people major in economics, and the demand for economists does not change, the wages of economists […]
Date: September 9th, 2020
The military is NOT a perfectly competitive market because A) there is only one buyer, i.e., the government, for military goods/services. B) there is imperfect information, i.e., intelligence branches. C) there are heterogeneous goods/services because each military branch provides different goods/services. D) All of the above. ANSWER D
Date: September 9th, 2020
During a mild winter, the price of home heating oil is expected to be less than it would be during a normal winter. Indicate whether the statement is true or false ANSWER True . During a mild winter, people do not need to operate their furnace as often as in a normal winter. The […]
Date: September 9th, 2020
Quotas are most often supported by A) foreign producers. B) foreign consumers. C) domestic consumers. D) domestic producers. ANSWER D
Date: September 9th, 2020
Municipalities that have adopted the policy of “rent control” typically set the rentals on certain apartments well below equilibrium. As a result, A) landlords have a difficult time finding tenants. B) prospective tenants have a difficult time finding available apartments. C) there is a surplus of apartments. D) All of the above. ANSWER B […]
Date: September 9th, 2020
The fact that many people drive faster than the posted speed limit suggests that A) not all price floors are enforceable. B) not all price and quantity regulations are enforceable. C) individual drivers act irrationally. D) government regulation is utterly useless. ANSWER B
Date: September 9th, 2020
In the labor market, if the government imposes a minimum wage that is below the equilibrium wage, then A) workers who wish to work at the minimum wage will have a difficult time finding jobs. B) firms will hire fewer workers than without the minimum wage law. C) some workers may lose their jobs as […]
Date: September 9th, 2020
Considering that the U.S. places a quota on imports of steel from South Korea, which of the following would NOT likely occur? A) The price of steel in the United States would increase. B) The quantity of steel produced in the United States would increase or stay the same. C) The demand for steel in […]
Date: September 9th, 2020
