Refer to the above figure. A price ceiling of 20 results in
A) a shortage of 100 units.
B) a shortage of 200 units.
C) a surplus of 100 units.
D) a surplus of 200 units.
Ques. 2At a point on a production possibilities curve, opportunity cost of more capital goods today is
A) fewer capital goods in the future.
B) fewer consumer goods in the future.
C) fewer consumer goods today.
D) more unemployed resources in the future.
Ques. 3Regarding open economies, economists tend to find evidence that
A) the more closed an economy is, the higher the rate of growth the economy will experience.
B) trade tariffs tend to improve economic growth.
C) free trade encourages a more rapid spread of technology, and hence increases economic growth.
D) open economies tend to have access to smaller markets than do closed economies.
Ques. 4A characteristic of a public good is that a public good is provided
A) to some businesses, but not to others.
B) only in some states.
C) to low income residents in some states.
D) to many individuals at no additional cost.
Ques. 5A technological improvement in the production of tablets would
A) increase the demand for tablets.
B) increase the supply of tablets.
C) decrease the demand for tablets.
D) decrease the supply of tablets.
Ques. 6One goal of rate-of-return regulation is the prevention of
A) free market entry.
B) positive economic profits.
C) poor quality service.
D) environmental degradation.
Ques. 7Which is NOT a characteristic of monopolistic competition?
A) small share of market to each firm
B) lack of collusion among firms
C) few firms in the industry
D) independence of each firm's decisions
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