A price floor is
a. a maximum price above which the good cannot be legally bought or sold
b. the lowest price buyers are willing to pay for a good.
c. a minimum price below which the good cannot be legally bought or sold.
d. a minimum price above which the good cannot be legally bought or sold.
c. a minimum price below which the good cannot be legally bought or sold.
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In the above table, for Mary the opportunity cost of producing a dress is ________ and the opportunity cost for Mark of producing a dress is ________
A) 1 1/2 jackets; 2 1/2 jackets B) 1 jacket; 1 jacket C) 1 dress; 1 dress D) 1 1/2 jackets; 2/3 of a jacket E) 1 1/4 jackets; 1/2 of a jacket
The supply of loanable funds curve has a positive slope because the
A) lower the real interest rate, the higher the return to saving. B) lower the real interest rate, the lower the return to saving. C) average return in the stock market is directly related to the real interest rate. D) quantity of investment increases when the real interest rate increases. E) higher the real interest rate, the lower the return to saving.
Refer to Table 4-4. The table above lists the highest prices three consumers, Curly, Moe, and Larry, are willing to pay for a bottle of champagne. If the price of the champagne falls from $24 to $14
A) consumer surplus will increase from $80 to $95. B) consumer surplus increases from $32 to $53. C) Larry and Moe will receive more consumer surplus than Curly. D) Curly will buy four bottles; Moe will buy two bottles, and Larry will buy one bottle.
In the 1980s and 1990s, Chile adopted capital controls that limited the ability of its citizens to buy or sell assets abroad. This action:
A. limited only capital account convertibility. B. limited both current and capital account convertibility. C. introduced full convertibility. D. limited only current account convertibility.