If a price ceiling were established above the equilibrium price,
A) it would have no effect on the quantity demanded.
B) it would create a shortage.
C) it would create a surplus.
D) none of the above.
A
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People are unlikely to choose to pay extra for a low-emissions automobile, because they:
a. do not fully understand the environmental benefits of lower emissions. b. are better off "free-riding" on others' attempts to reduce emissions. c. would have to sacrifice fuel efficiency and automotive performance. d. cannot afford the extra expense of "green" technology.
Which of the following observations concerning labor cost patterns over the last century is true?
a. Average real wages started rising after 1973. b. Hourly compensation rates have fallen dramatically. c. Compensation growth slowed markedly. d. Average hours worked per week have increased by almost 50 percent.