Figure 5-1
In , S1 and D illustrate the demand and supply for a product if it were produced in a normal competitive market. Which of the following would be true if the firms in the industry were instead able to get government licensing restrictions to limit competition in the market?
a.
The restricted market supply would be S3, resulting in a lower price and a higher than efficient level of output.
b.
The restricted market supply would be S3, resulting in a higher price and a less than efficient level of output.
c.
The restricted market supply would be S2, resulting in a lower price and a higher than efficient level of output.
d.
The restricted market supply would be S2, resulting in a higher price and a less than efficient level of output.
d
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Average labor productivity is defined as
A) per-capital real GDP divided by employment. B) nominal GDP divided by employment. C) per-capita nominal GDP divided by employment. D) real GDP divided by employment.
Tax cuts associated with supply-side economics often lead to increased
A. federal budget surpluses. B. federal budget deficits. C. foreign trade surpluses. D. government spending.