A.How do Minimum Wage Laws affect the equilibrium in the Labor Market?
B. For your selected product, if the government places a mandated price ABOVE the equilibrium price, how would this affect the market equilibrium?
C. Would you rather have the forces of demand and supply determine the price of gasoline, or would you prefer a government-mandated price ceiling? What problems would a price ceiling on gasoline bring in this market?
D. In conclusion, there are two different schools of thought on how to lower gasoline prices and reduce U.S. dependence on foreign oil. One is to increase SUPPLY of oil (drilling offshore), and the other is to decrease DEMAND (finding alternatives to oil). Can you graph how these two changes will bring about lower gas prices? Which one do you support?
A.How do Minimum Wage Laws affect the equilibrium in the Labor Market?
B. For your selected product, if the government places a mandated price ABOVE the equilibrium price, how would this affect the market equilibrium?
C. Would you rather have the forces of demand and supply determine the price of gasoline, or would you prefer a government-mandated price ceiling? What problems would a price ceiling on gasoline bring in this market?
D. In conclusion, there are two different schools of thought on how to lower gasoline prices and reduce U.S. dependence on foreign oil. One is to increase SUPPLY of oil (drilling offshore), and the other is to decrease DEMAND (finding alternatives to oil). Can you graph how these two changes will bring about lower gas prices? Which one do you support?
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QUESTION 38
You are the president of the United States. In an attempt to make gasoline prices cheaper, you have imposed a binding price ceiling on gas. What would you expect your critics to say?
a. |
The binding price ceiling will cause firms to minimize their spending on the research and development of alternatives to gasoline. |
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b. |
The binding price ceiling will discourage individuals from using their personal automobile to commute to work or school. |
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c. |
The binding price ceiling will increase the likelihood that customers obtain needed |
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d. |
The binding price ceiling will encourage oil companies to deplete the resource too quickly. |
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e. |
The binding price ceiling will cause firms to produce only gasoline of the highest quality. |
1.05000 points
QUESTION 39
If a firm's long-run average total costs increase as it increases its scale of production, the firm is experiencing:
a. |
increasing returns from specialization. |
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b. |
diseconomies of scale. |
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c. |
economies of scale. |
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d. |
constant returns to scale. |
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e. |
diminishing marginal product. |
1.05000 points
QUESTION 40
A(n) __________ in the elasticity of supply or demand in a market for a good that is taxed would tend to __________ tax revenue from that tax.
a. |
increase; increase |
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b. |
increase; have no effect on |
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c. |
decrease; have no effect on |
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d. |
decrease; decrease |
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e. |
increase; decrease |
1.05000 points
QUESTION 41
The costs of a market activity paid for by an individual engaged in the market activity are:
a. |
external costs. |
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b. |
social costs. |
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c. |
common costs. |
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d. |
free-rider costs. |
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e. |
internal costs. |
1.05000 points
QUESTION 42
Assume that the price of rubber increased at the same time that Michael Jordan, arguably the best NBA basketball player of all time, became famous. What do you expect to happen to the equilibrium price and equilibrium quantity of the basketball shoes that are promoted by Michael Jordan?
a. |
Equilibrium price will go down and equilibrium quantity will be indeterminate. |
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b. |
Equilibrium price will go up and equilibrium quantity will go down. |
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c. |
Equilibrium price will go up and equilibrium quantity will be indeterminate. |
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d. |
Equilibrium price will go down and equilibrium quantity will go up. |
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e. |
Equilibrium price will go up and equilibrium quantity will go up. |
1.05000 points
QUESTION 43
The minimum wage law is an example of a:
a. |
price floor. |
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b. |
law that sets the minimum number of hours that an employee must work for wages during the week. |
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c. |
law that allows individual employers and employees to make free decisions. |
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d. |
law that requires quantity demanded to equal quantity supplied. |
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e. |
price ceiling. |