Question 71 1 pts 71. Here are two statements about how people's expectations of future prices affect what they do in the current period. If both buyers and sellers expect the price to rise next period, the price would rise in the current period. If both buyers and sellers expect the price to fall next period, the price would fall in the current period. Choose the correct option from the list below. A Neither statement is true B Only I is true. Only II is true. Both statements are true. OD OC OA OB Question 72 1 pts 72. Here are four statements about price controls. A price ceiling below the market-clearing price generates a surplus. The San Francisco rent control ordinance is an example of a price ceiling. A price floor above the market-clearing price generates a shortage. IV The San Jose minimum wage law is an example of a price floor. Choose the correct option from the list below. A All four statements are false. B Only I and Ill are true. C Only II and IV are true. All four statements are true. OA OB OC OD Question 73 1 pts 73. It is often said that free markets bring prosperity to ordinary people. And it is widely acknowledged that in the process some people become rich, perhaps very rich. How would you expect a politician in a democracy to make the case for free markets? A Successful entrepreneurs become rich. B The wants of ordinary people are satisfied. OB OA Question 74 1 pts 74. Adam Smith asserted that (choose one) A the division of labor is limited by the extent of the market B the size of the market is limited by the division of labor OA OB Question 75 1 pts 75. At any one time, FAR FEWER production methods are A economically feasible than are technologically feasible B technologically feasible than are economically feasible OB OA Question 76 1 pts 76. If a subsidy to the employers of low-wage workers did not create any deadweight loss, the (price) elasticity of supply of low-wage labor would be A infinite B one zero OC OB OA Question 77 1 pts 77. If you were the only person on a desert island with ranked goals (e.g., fresh water, food, etc.), and if there were an abundance of natural resources but production always took time, you would O face an economic problem not face an economic