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Question
What will an individual do differently as a buyer in the black market in the long run?
a. He or she will substitute away from the product.
b. He or she will substitute toward the product.
c. When a binding price floor exists, he or she will be willing to pay a higher price.
d. When a binding price ceiling exists, he or she will be willing to pay a lower price.
e. What he or she does as a buyer in the long run will be no different from what he or she does in the short run.
Answer
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Related questions
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The city decides to offer a subsidy to each homeowners association that plants more flowers in their common areas. In the market for flowers, this will cause the
a. supply curve to shift to the left.
b. supply curve to shift to the right.
c. demand curve to shift to the left.
d. demand curve to shift to the right.
e. the supply curve to shift to the left and the demand curve to shift to the right.
Q:
The market works efficiently in the absence of externalities if the good is
a. rival and excludable.
b. nonrival and nonexcludable.
c. rival and nonexcludable.
d. nonrival and excludable.
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Which rule would NOT protect fish populations?
a. limiting the length of the fishing season
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Q:
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Q:
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Q:
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Q:
If a store sells a good at the market price, even though the government authorities have set the minimum price that can be charged, the store is selling the good in a(n)
a. black market for a market price that is higher.
b. black market for a market price that is lower.
c. effort to eliminate a surplus of the good.
d. legal market for a market price that is higher.
e. legal market for a market price that is lower.
Q:
A market where exchanges occur despite price regulations is called a(n) ________ market.a. hidden b. noncompetitive c. blackd. prohibitede. outlaw
Q:
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b. can always negotiate to correct a negative externality.
c. can negotiate to correct a negative externality if there are no barriers to negotiation.
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a. it is a private good.
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Q:
External benefits arise from the actions of
a. firms.
b. consumers.
c. firms and consumers.
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Q:
What makes an externality positive rather than negative?
a. The deadweight loss is greater than zero, not less.
b. The socially optimal quantity exchanged is less, not greater, than at market equilibrium.
c. The externality affects the demand curve rather than the supply curve.
d. The externality benefits third parties rather than harming them.
e. The externality becomes internalized without government action.
Q:
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Q:
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a. the same amount to be sold and the price to be $4 higher.
b. the same amount to be sold and the price to increase by less than $4.
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