Question

Question 51 (1 point) What is the market outcome and efficiency effect of minimum wage policy using the theory of perfect competitive markets? Unemployment - fair and affordable wage for all Shortage - loss in gain from trade Shortage - fair and affordable wage for all Unemployment - loss in gain from trade Question 52 (1 point) Why are too few resources generally devoted to research in new technologies in developing countries? New technologies cannot be patented. O Government research grants are not easily obtainable. O Negative externalities are created from some research. Inventors cannot capture the full benefits of their inventions. Question 53 (1 point) What is the greatest difficulty with cost-benefit analysis of a public project? determining whether government revenue is sufficient to cover the cost of the project determining whom to award the project contract determining the cost of the project determining the value or benefit of the project Question 54 (1 point) Market demand is given as QD = 30 - P. Market supply is given as QS = 2P. Which legally imposed price would constitute a binding price floor? o oo

Answer 1

51) unemployment - loss in gain from trade.
52) inventors cannot capture the full benefits of their inventions.

53) determining the value or benefit of the project.

54) $13

At equilibrium demand = supply

30-P = 2P

30 = 3P

P= 10

Binding price floor has to be greater than 10