A price floor is
A. the difference between the initial equilibrium price and the equilibrium price after a decrease in supply.
B. the minimum price that consumers are willing to pay for a good.
C. a maximum price set by government that sellers may charge for a good.
D. a minimum price set by government that sellers may charge for a good.
Answer: D
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The concept of minimizing the number of physical units of the inputs needed for a given amount of output is known as
a. technical efficiency. b. the principle of diminishing marginal returns. c. economic efficiency. d. decreasing returns to scale.
A downward-sloping demand curve illustrates
a. that demand decreases over time. b. that prices fall over time. c. the relationship between income and quantity demanded. d. the law of demand.
Which philosopher claimed that the government should aim to maximize the well-being of the worst-off person in society?