Which of the following is an example of a price floor?
A) a law passed in a city to lower apartment rents by setting the maximum price that can be charged for rent
B) an equilibrium price
C) a minimum wage law
D) a law setting the highest price that can legally be charged for a gallon of gasoline.
E) None of the above answers give examples of a price floor.
C
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The current account balance is equal to net exports ________ net interest ________ net transfers
A) plus; minus B) minus; minus C) minus; plus D) plus; plus E) multiplied by; multiplied by
Raul Prebisch's objection to having developing countries treat trade as the "engine of growth" was that
a. agricultural goods were becoming cheaper while industrial products were becoming more expensive b. industrial products were being substituted for primary products c. workers in poor countries had little bargaining power, while unions in rich countries pushed wages up d. agricultural products were becoming a smaller portion of peoples' budgets as income rose e. all of the above
For an oligopoly, when the quantity effect outweighs the price effect, firms may have the incentive to:
A. increase output. B. decrease output. C. not change the level of output. D. leave the industry.
A lottery promises a $250,000 prize. But the prize money is paid out in $50,000 annual installments with the first installment received today.. The winner is offered the option of an immediate lump-sum payment. If the interest rate remains at 10 percent for the entire period, what is the smallest amount the winner should accept?
a. $189,540 b. $192,970 c. $208,494 d. $225,000