QUESTION 25 An example of a binding price ceiling is the equilibrium price. a, a
ID: 1116922 • Letter: Q
Question
QUESTION 25 An example of a binding price ceiling is the equilibrium price. a, a minimum wage law that is set above b a minimum wage law that is set below o c. a black market that sets the price below d rent control that is set below O e. rent control that is set above QUESTION 26 An economy that does not trade with the rest of the world is a(n) , economy a trade () D. command c, one-person o d. closed e.open QUESTION 27 Bea bakes pastries well, and Lucian raises great herbs. If Lucian trades parsley with Bea in exchange for cupcakes, then o a only Lucian is made better off by trade o b. neither Bea nor Lucian are made better off by trade c.both Bea and Lucian are made better off by trade o d. either Bea or Lucian is made better off by trade, but not both o e only Bea is made better off by trade QUESTION 28 A situation with only one buyer of labor is called a(n) o a oligopoly Ob. labor market disequilibrium O c. labor market equilibrium e monopsonyExplanation / Answer
25.
The example of a binding price ceiling is a rent which is set below the equilibrium price.
This because arent above the equilibrium price or equal to price are meaningless.
Hence option d is the correct answer.
26.
An economy which does not trade with the rest of the world is called the closed economy. This because trade is closed to rest of the world.
Hence option d is the correct answer.
27.
If Bea bakes pastries well, and Lucian is good at growing herbs. Then if both trade with each other, then both of them will be better off. This is Because now both can consume more than what they could consume if they were producing both goods and consuming both goods themselves.
hence option C is the correct answer.
28.
When there are only buyers of any goods and services, then it is called monopsony.
Since the buyer of labor is the single firm, therefore it is an example of the monopsony.
Hence option e is the correct answer.
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