If a price floor is set below the current market clearing price, then
A) a surplus must immediately occur.
B) a shortage must immediately occur.
C) there will be incentives for black markets to develop.
D) quantity demanded will remain equal to quantity supplied at the current market clearing price.
D
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Omar and John can fix computers or write computer programs. The table above shows the number of computers they can fix and the lines of code they can write in a day
a. Who, if anyone, has the absolute advantage? b. Who has the comparative advantage in fixing computers? Why? c. Who has the comparative advantage in writing programs? Why?
The substitution of machines for labor
A) does not reduce employment opportunities because labor is required to produce the machines. B) is not likely to reduce employment opportunities because as many or more workers will usually be demanded to produce, service, and operate the machines. C) will proceed more rapidly in a society the more rapidly the cost of hiring workers rises. D) will reduce employment opportunities if increased competition associated with the introduction of machinery lowers product prices.