An effective price ceiling causes a loss of
A) producer surplus for certain and possibly consumer surplus as well.
B) consumer surplus only.
C) producer surplus only.
D) consumer surplus for certain and possibly producer surplus as well.
E) neither producer nor consumer surplus.
A
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The economic system envisioned by the Constitution _________
a. embodied Adam Smith's emphasis on protecting private property b. used the Civil Code of France, rather than the English Common Law, as its foundation. c. enshrined the traditional 18th century model of mercantilism which allowed the government to have large control over private ownership of goods and services d. fostered Jefferson's idea of a democracy based primarily on agriculture
Answer the following statements true (T) or false (F)
1. The prices of resources are an important factor in the determination of money income. 2. The demand for a resource is a derived demand based on the demand for the product it helps to produce. 3.The demand for a resource is a derived demand based on the demand for the product it helps to produce. 4 A firm's demand schedule for a resource is the firm's marginal product schedule for the resource. 5. A competitive firm's marginal revenue product of labor will fall as it employs more labor because of the decrease in the price of labor as more of it is employed.