A market consequence of a price floor is that
a. consumers will discover that there aren't sufficient quantities of the good available at the floor price
b. producers will reduce the quantity of good they supply
c. some rationing mechanism, such as ration coupons, must be created
d. an excess supply of the good results
e. an excess demand for the good results
D
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The production function displays
A) normal returns. B) increasing returns. C) diminishing returns. D) average returns. E) real returns.
According to economic theory, social interactions are the result of
A) calculated choices by individuals B) chance and the laws of probability. C) genetic and environmental factors. D) random occurrences.
The major similarity between a monopolist and a monopolistically competitive firm is that:
a. both are price takers. b. both face a horizontal demand curve. c. both are the sole producers of a particular good. d. both face a negatively sloped demand curve. e. both are affected by the decision of their rivals.
The trend in the United States toward the merger of unions is driven by the labor movement's desire to accomplish all of the following except
A. Avoid low-wage workers in service industries. B. Enhance their political power. C. Increase representation. D. Gain financial strength.