Economics

Which statement is normative? (Multiple Choice)

Which statement is normative? (Multiple Choice)

Which statement is normative?
A) When a price floor is increased, quantities will adjust.
B) When a price ceiling is decreased, quantities will adjust.
C) Economists should not make positive statements.
D) When workers are not equ

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Laurent

In the private U.S. health care market, those unable to pay do not receive health care services.True ...

In the private U.S. health care market, those unable to pay do not receive health care services.True ...

In the private U.S. health care market, those unable to pay do not receive health care services.

True or False?

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Laurent

In an efficient market outcome, prices just cover all opportunity costs of production and consumers ...

In an efficient market outcome, prices just cover all opportunity costs of production and consumers ...

In an efficient market outcome, prices just cover all opportunity costs of production and consumers buy products and services providing the most bang per buck.

True or False?

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Laurent

In the U.S. health care system, priority treatment goes to the patients who are

In the U.S. health care system, priority treatment goes to the patients who are

In the U.S. health care system, priority treatment goes to the patients who are
A) willing and able to pay the most.
B) willing and able to beg the nurse in the hospital emergency room.
C) most in need of the treatment.
D) willing

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Laurent

If the demand for labour is very inelastic, a rise in the minimum wage results in large job ...

If the demand for labour is very inelastic, a rise in the minimum wage results in large job ...

If the demand for labour is very inelastic, a rise in the minimum wage results in large job losses.

True or False?

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Laurent

Minimum wages are a form of price ceiling (True or false?)

Minimum wages are a form of price ceiling (True or false?)

Minimum wages are a form of price ceiling.

True or False?

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Laurent

Minimum wage laws are inefficient because the minimum wage does not reflect the

Minimum wage laws are inefficient because the minimum wage does not reflect the

Minimum wage laws are inefficient because the minimum wage does not reflect the
A) differences between men and women.
B) opportunity cost of employers.
C) marginal benefit of working.
D) marginal benefit of being an employer.

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Laurent

A new minimum wage law most hurts the working poor when

A new minimum wage law most hurts the working poor when

A new minimum wage law most hurts the working poor when
A) demand for unskilled labour is inelastic.
B) gains from workers who remain employed are greater than the lost income of workers who lose their jobs.
C) businesses have many sub

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Laurent

A new minimum wage law best helps the working poor when

A new minimum wage law best helps the working poor when

A new minimum wage law best helps the working poor when
A) demand for unskilled labour is inelastic.
B) gains from workers who remain employed are greater than the lost income of workers who lose their jobs.
C) businesses have few subs

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Laurent

Rent controls, which set a maximum rent, are a price floor (True or false?)

Rent controls, which set a maximum rent, are a price floor (True or false?)

Rent controls, which set a maximum rent, are a price floor.

True or False?

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Laurent

Government housing subsidies are a better policy alternative to rent controls because

Government housing subsidies are a better policy alternative to rent controls because

Government housing subsidies are a better policy alternative to rent controls because
A) people who live at home will be better off.
B) these subsidies provide income for governments.
C) government housing subsidies will be less expens

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Laurent

The shortages and lineups created by setting a price ceiling for gasoline will be worst when the ...

The shortages and lineups created by setting a price ceiling for gasoline will be worst when the ...

The shortages and lineups created by setting a price ceiling for gasoline will be worst when the demand for gasoline by drivers is ________ and the supply of gasoline by the oil companies is ________.
A) inelastic; inelastic
B) elastic; ela

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Laurent

When governments fix prices above the market-clearing price, the smart choices of consumers and ...

When governments fix prices above the market-clearing price, the smart choices of consumers and ...

When governments fix prices above the market-clearing price, the smart choices of consumers and businesses are coordinated.

True or False?

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Laurent

Key money is a form of quantity adjustment (True or false?)

Key money is a form of quantity adjustment (True or false?)

Key money is a form of quantity adjustment.

True or False?

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Laurent

Waiting lists are a form of quantity adjustment (True or false?)

Waiting lists are a form of quantity adjustment (True or false?)

Waiting lists are a form of quantity adjustment.

True or False?

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Laurent

A price floor set above the equilibrium price results in

A price floor set above the equilibrium price results in

A price floor set above the equilibrium price results in
A) surpluses.
B) shortages.
C) the equilibrium price.
D) an increase in supply.
E) a decrease in demand.

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Laurent

When governments fix prices above market-clearing levels,

When governments fix prices above market-clearing levels,

When governments fix prices above market-clearing levels,
A) there is an increase in demand.
B) quantity supplied is greater than quantity demanded.
C) quantity supplied equals quantity demanded.
D) there is a decrease in suppl

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Laurent

When prices are fixed above the equilibrium price,:

When prices are fixed above the equilibrium price,:

When prices are fixed above the equilibrium price,
A) there are shortages.
B) quantity demanded is greater than quantity supplied.
C) buyers are frustrated.
D) quantity adjusts to quantity supplied.
E) sellers are frustrated

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Laurent

When prices are fixed below the equilibrium price, all of the following happen except

When prices are fixed below the equilibrium price, all of the following happen except

When prices are fixed below the equilibrium price, all of the following happen except
A) surpluses.
B) shortages.
C) frustrated buyers.
D) quantity adjustments.
E) undesired decreases in inventories.

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Laurent

A sales tax that sellers must pay to the government is always paid entirely by sellers.True or ...

A sales tax that sellers must pay to the government is always paid entirely by sellers.True or ...

A sales tax that sellers must pay to the government is always paid entirely by sellers.

True or False?

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Laurent

The more inelastic demand is for a product, the more sellers pay of the sales tax (True or false?)

The more inelastic demand is for a product, the more sellers pay of the sales tax (True or false?)

The more inelastic demand is for a product, the more sellers pay of the sales tax.

True or False?

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Laurent

If the equilibrium quantity sold of a product is not affected by a sales tax

If the equilibrium quantity sold of a product is not affected by a sales tax

If the equilibrium quantity sold of a product is not affected by a sales tax
A) supply is perfectly elastic.
B) supply is perfectly inelastic.
C) demand is perfectly elastic.
D) elasticity of supply is greater than elasticity of d

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Laurent

The tax incidence on sellers is greater the more 1elastic demand is2inelastic demand is3elastic ...

The tax incidence on sellers is greater the more 1elastic demand is2inelastic demand is3elastic ...

The tax incidence on sellers is greater the more

1   elastic demand is
2   inelastic demand is
3   elastic supply is
4   inelastic supply is

A) 2 only
B) 1 and 3
C) 1 and 4
D) 2 and 3
E) 2 and 4

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Laurent

Normal goods that are necessities tend to have income elasticities of demand that are greater than ...

Normal goods that are necessities tend to have income elasticities of demand that are greater than ...

Normal goods that are necessities tend to have income elasticities of demand that are greater than zero but less than 1.

True or False?

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Laurent

Substitutes have negative cross elasticities of demand (True or false?)

Substitutes have negative cross elasticities of demand (True or false?)

Substitutes have negative cross elasticities of demand.

True or False?

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Laurent

If a 4 percent decrease in income causes a 2 percent decrease in the consumption of pencils then:

If a 4 percent decrease in income causes a 2 percent decrease in the consumption of pencils then:

If a 4 percent decrease in income causes a 2 percent decrease in the consumption of pencils then
A) the income elasticity of demand for pencils is negative.
B) pencils are a necessity and a normal good.
C) pencils are a luxury and a

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Laurent

All normal goods have income elasticities of demand that are

All normal goods have income elasticities of demand that are

All normal goods have income elasticities of demand that are
A) positive and greater than 1.
B) positive and less than 1.
C) equal to their price elasticities of supply.
D) negative.
E) positive.

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Laurent

Supply is inelastic when it is easy for a business to hire additional inputs (True or false?)

Supply is inelastic when it is easy for a business to hire additional inputs (True or false?)

Supply is inelastic when it is easy for a business to hire additional inputs.

True or False?

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Laurent

Mike's Mystery Meats cut prices just a little, and Mike was surprised when sales exploded. Mike ...

Mike's Mystery Meats cut prices just a little, and Mike was surprised when sales exploded. Mike ...

Mike's Mystery Meats cut prices just a little, and Mike was surprised when sales exploded. Mike couldn't keep up with demand, and had to turn away customers. Mike's
A) demand is inelastic and supply is inelastic.
B) demand is

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Laurent

Supply is more inelastic when inputs are

Supply is more inelastic when inputs are

Supply is more inelastic when inputs are
A) more available and production takes more time.
B) less available and production takes less time.
C) more available and production takes less time.
D) less available and production takes

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Laurent

Cineplex pays Uros $10 an hour to collect tickets. He works 20 hours a week. He told his manager ...

Cineplex pays Uros $10 an hour to collect tickets. He works 20 hours a week. He told his manager ...

Cineplex pays Uros $10 an hour to collect tickets. He works 20 hours a week. He told his manager that he would work 25 hours a week for a $2 wage raise. Uros's elasticity of supply using the simple formula is
A) 1.25.
B) 1.50.
C)

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Laurent

If a 5 percent rise in price causes a 20 percent increase in quantity supplied, the elasticity of ...

If a 5 percent rise in price causes a 20 percent increase in quantity supplied, the elasticity of ...

If a 5 percent rise in price causes a 20 percent increase in quantity supplied, the elasticity of supply is
A) 1/5.
B) 4.
C) 5.
D) 1/4.
E) 0.

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Laurent

When price rise by 10 percent, quantity supplied does not change. Supply is

When price rise by 10 percent, quantity supplied does not change. Supply is

When price rise by 10 percent, quantity supplied does not change.  Supply is
A) perfectly inelastic.
B) irrational.
C) inelastic.
D) perfectly elastic.
E) elastic.

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Laurent

Which factor leads a business to have an elastic supply?

Which factor leads a business to have an elastic supply?

Which factor leads a business to have an elastic supply?
A) Inflexible contracts with suppliers of key inputs.
B) A strong union representing the workers.
C) A long-term lease on the store.
D) A limited amount of time to respond t

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Laurent

To earn maximum revenue, a business should cut its price when demand is inelastic (True or false?)

To earn maximum revenue, a business should cut its price when demand is inelastic (True or false?)

To earn maximum revenue, a business should cut its price when demand is inelastic.

True or False?

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Laurent

When the price rises for a product with inelastic demand, consumers have a low willingness to shop ...

When the price rises for a product with inelastic demand, consumers have a low willingness to shop ...

When the price rises for a product with inelastic demand, consumers have a low willingness to shop elsewhere.

True or False?

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Laurent

A perfectly inelastic demand curve is

A perfectly inelastic demand curve is

A perfectly inelastic demand curve is
A) downward sloping.
B) upward sloping.
C) vertical.
D) horizontal.
E) none of the above.

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Laurent

When the Toronto Star newspaper lowered the weekly subscription price from $5.70 to $2.85 — a ...

When the Toronto Star newspaper lowered the weekly subscription price from $5.70 to $2.85 — a ...

When the Toronto Star newspaper lowered the weekly subscription price from $5.70 to $2.85 — a savings of 50% — the number of subscriptions sold tripled. The price elasticity of demand is
A) 3.0.
B) 2.0.
C) 0.5.
D) 6.0.
E) 4.0

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Laurent

At the quantity of an efficient market outcome, marginal benefit is greater than marginal cost.True ...

At the quantity of an efficient market outcome, marginal benefit is greater than marginal cost.True ...

At the quantity of an efficient market outcome, marginal benefit is greater than marginal cost.

True or False?

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Laurent

At an efficient market outcome,

At an efficient market outcome,

At an efficient market outcome,
A) total consumer surplus is zero.
B) total producer surplus is zero.
C) consumer surplus exceeds producer surplus by the greatest possible amount.
D) producer surplus exceeds consumer surplus by

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