Refer to the above figure. If the government imposes a price floor of 20
A) the quantity traded will be 150, and the price will be 20.
B) the quantity traded will be 100, and the price will be 20.
C) the quantity traded will be 200, and the price will be 20.
D) none of the above.
Ques. 2A positive economic statement is one that
A) can be refuted.
B) is free of the ceteris paribus assumption.
C) is based on a value judgment.
D) asserts something about the role of moral behavior in building a strong economy.
Ques. 3The higher the concentration ratio is in an industry, the more likely it is that
A) the industry is perfectly competitive.
B) the market share of the smallest four firms is larger.
C) the market share of the largest four firms is smaller.
D) the industry has an oligopoly.
Ques. 4Full employment is not zero unemployment because
A) there are statistical errors when determining the unemployment rate that cannot be overcome.
B) there is normal friction in the economy made up of those workers who are between jobs and those new entrants to the labor force.
C) there are undocumented workers in the economy who are not counted by the Bureau of Labor Statistics.
D) government workers are not counted in the labor force.
Ques. 5Which of the following is NOT a feature of monopolistic competition?
A) significant numbers of sellers in a highly competitive market
B) differentiated products
C) sales promotion and advertising
D) inability of firms to enter or exit the market
Ques. 6An important characteristic of private goods is
A) the nonexclusion principle.
B) the principle of rival consumption.
C) the principle of joint consumption.
D) the principle of conspicuous consumption.
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