University:
Western Governors University
Course:
C211 | Global Economics
Academic year:

2020
Views:

191

Pages:

3
Author:

elcopihuesn

DSM Which of the following statements about a shortage is correct?: There is no shortage of most scarce goods. Price performs a rationing function. Inputs or outputs go to the highest bidders if people are free to exchange voluntarily in the markets without government intervention or other market friction. For markets to generate the greatest benefit and function in the most efficient manner, they must: Be Perfectly Competitive. Some people believe there should be a legally determined minimum price for farm products such as milk. A limit on the price of milk would be an example of: Price Floor Which of these graphs best describes a minimum price imposed for milk?: Graph A.  The minimum price is higher than the current market determined equilibrium price. In response to information regarding the salaries of executives at firms receiving bailout funds in the United States, some people called for a limit on the salaries paid to executives. Such a limit on the compensation executives can receive is an example of: Price Ceiling. A legally determined minimum price that sellers must receive is known as: Price Floor. If an effective minimum wage is imposed, then: More workers will be unable to find jobs. The cost of saving jobs through trade barriers like tariffs and quotas is: relatively high. Black markets may arise if: price ceilings exist. According to the graph, what is the impact of a quantity restriction (known as a taxi medallion) on the number of taxis allowed to service this market?: There is an excess demand for taxi service and a higher price. When a country imposes a quota on the amount of goods it will allow into its borders, it creates a situation where there are clear winners and clear losers. The winners are the domestic producers, while the losers are the domestic consumers. A tax imposed by a government on imported products is called a: tariff. Prolonged shortages arise if: prices are not allowed to rise to equilibrium. Price controls that put a price ceiling on goods and services create shortages. According to the graph how much domestic sugar will be supplied at the $0.12 price under free trade?: Zero pounds.  Domestic suppliers are unwilling to supply any output at a price of $0.12 per pound. They will not begin to produce at all until the price reaches $0.26 per pound. Prolonged agricultural surpluses can arise if governments: set the price above equilibrium. A legally determined maximum that sellers may charge is known as a: price ceiling. According to this graph the existence of a minimum wage in the market for low-skilled workers results in: an increase in wages but lower employment. According to this graph the existence of a minimum wage in the market for low-skilled workers results in a: Surplus of workers. A voluntary export restraint is a negotiated agreement between two countries that limits the quantity of a specific product that may be imported into a country. A numerical limit on the quantity of a good that can be imported is a: quota. Rent controls: make tenants less mobile. Which of the following terms correspond to a market where buying and selling take place at prices that violate government price regulations?: Black Market. Price controls that put a price floor on goods and services create surpluses.