A nonbinding price floor i. causes a surplus. ii. causes a shortage. iii. is set at a price above the equilibrium price. iv. is set at a price below the equilibrium price
a. (iii) only
b. (iv) only
c. (i) and (iii) only
d. (ii) and (iv) only
b
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One of the most widely followed stock indexes in the United States is the S&P 500. This index represents
A) the stock prices of the 500 most valuable firms worldwide. B) the stock prices of more than 4,000 U.S. firms. C) the stock prices of 500 large U.S. firms. D) the stock prices of 30 large U.S. corporations.
A market structure in which only one firm has survived because of its economies of scale is called a
a. natural monopoly. b. planned monopoly. c. structural monopoly. d. free monopoly.
Which of the following is an example of conspicuous consumption?
A. Purchasing an expensive automobile to impress others B. Purchasing of hip-hugger pants because pop stars wear them C. Avoiding cheap computers because low price indicates low quality D. Purchasing fast food because it is cheap and convenient
The first systematic attempt to explain the determinants of the price level and national levels of income, employment, consumption and real Gross Domestic Product (GDP) was made by ________ economists.
A. Keynesian B. classical C. monetarist D. supply-side