A price ceiling represents
A. a minimum price that can be legally charged for a good or service.
B. a first come, first served mechanism for controlling prices.
C. a maximum price that can be legally charged for a product or service.
D. a lottery imposed upon producers by the government.
Answer: C
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Assume the firms in a monopolistically competitive market are currently incurring economic losses
Because they are price searchers, existing firms will raise their prices until the losses are eliminated and each firm is once again earning zero economic profit. Indicate whether the statement is true or false
If investment per-worker equals some value X, and depreciation per-worker equals some value Z, then the change in the capital stock per-worker is equal to ________
A) X+Z B) X-Z C) X times Z D) X divided by Z
Protectionism is the view that:
A. a country's free trade agreements should be enforced. B. a country can best defend itself against foreign attack if it opens itself to trade. C. free trade agreements best protect a nation's economic interests. D. free trade is harmful and should be restricted.
When gasoline at $3.60/gallon looks relatively cheap after a period of $5-a-gallon gas, that's an illustration of the:
A. Planning fallacy B. Confirmation bias C. Framing effect D. Availability heuristic