Consider the US market for chocolate, a market in which the government has imposed a price ceiling. Which of the following events could convert the price ceiling from a nonbinding to a binding price ceiling?
a. a government study that shows that consuming chocolate increases the incidence of cancer.
b. a large increase in the size of the cocoa bean crop; cocoa beans are used to produce
chocolate.
c. South American cocoa bean producers refuse to ship to chocolate producers in the US.
d. a sharp drop in consumer income; chocolate is a normal good.
c
Economics
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If your nominal wage rises faster than the price level, we can say your real wage has ________ and the purchasing power of your income has ________
A) risen; risen B) fallen; risen C) risen; fallen D) fallen; fallen
Economics
If apples and pears have equivalent opportunity costs,
a. it makes no difference what the economy produces, pears or apples b. the economy always gains from producing more and trading the other c. the production possibilities curve is bowed out d. one apple trades for two pears e. one apple trades for one pear
Economics