A price floor influences the outcome of a market if it is ______
A. set below the equilibrium price
B. set above the equilibrium price
C. an incentive for buyers to increase demand for the good
D. an incentive for sellers to decrease supply of the good
B If the price floor is set above the equilibrium price, it makes the equilibrium price illegal.
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Refer to the scenario above. What is the net present value of buying the warranty?
A) $3.75 B) -$10.18 C) $15.54 D) -$30
Firms make a profit when they equate marginal revenue with marginal cost
Indicate whether the statement is true or false
One reason for the success that firms have in getting the government to erect and maintain barriers to foreign competition is members of Congress who engage in ________, where members in districts with protected industries agree to trade votes on issues
that concern other members in order to uphold tariffs. A) vote fixing B) gerrymandering C) logrolling D) filibustering
The aggregate cost of unemployment can be measured by the:
A. amount by which actual GDP exceeds potential GDP. B. amount by which potential GDP exceeds actual GDP. C. excess of real GDP over nominal GDP. D. excess of nominal GDP over real GDP.