If the price of a good is below the equilibrium
a. the inventories of producers will fall and the market price will tend to rise.
b. the inventories of producers will rise and the market price will tend to fall.
c. the inventories of producers will fall and the market price will tend to decline.
d. the inventories of producers will increase and the market price will tend to rise.
a. the inventories of producers will fall and the market price will tend to rise.
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Which of the following is an example of rent seeking behavior?
A) Recent increases in cigarette taxes faced little opposition from voters, many of whom were rationally ignorant with respect to the tax. B) U.S. sugar firms convinced Congress to impose a quota on imports of sugar. C) Amazon introduced the Kindle to compete with Sony's Digital Reader. Amazon was motivated by the desire to earn profits from the Kindle but also increased the choice of digital music players available to consumers. D) Apple earned large profits from the development and sale of the iPhone.
What was the least important reason for the failure of the Virginia Company?
a. Difficulty in finding good crops to grow b. The Company's employees had unforeseen labor alternatives. c. There was a relatively small incentive for employees to work hard. d. The death rate was much higher than they expected.