When supply and demand are both elastic, a price floor will cause a:
A. larger surplus than when supply and demand are inelastic.
B. larger shortage than when supply and demand are inelastic.
C. smaller surplus than when supply and demand are inelastic.
D. smaller shortage than when supply and demand are inelastic.
Answer: A
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The functional distribution of income measures which of the following?
A) the distribution of income among households B) how federal tax revenues are related to the business function that employs taxpayers C) the proportion of income generated by the four types of expenditures on goods and services D) the distribution of earnings by the factors of production E) the distribution of income among nations
Which of the following is an example of a normative statement?
a. The moon is made of green cheese. b. Women should earn the same income as men. c. When the price of a good rises, people will buy more of it. d. The more time you spend studying, the higher your economics test scores will be. e. The more time you spend studying for chemistry, the higher your economics test score will be.
A corporation in which all the stock is owned by only a few individuals or companies and is not made available for purchase by the public.
What will be an ideal response?
Refer to the profits-payoff table for a duopoly. If the firms are acting independently and firm X sets its price at $6, firm Y will achieve the largest profit by selecting:
A. a price higher than $6.
B. a price between $5 and $6.
C. $6.
D. $4.