A price floor is binding when it is set
a. above the equilibrium price, causing a shortage.
b. above the equilibrium price, causing a surplus.
c. below the equilibrium price, causing a shortage.
d. below the equilibrium price, causing a surplus.
b
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The ability to produce a product at a lower resource cost than another nation can produce the same product is called comparative advantage
Indicate whether the statement is true or false
With free trade between China and the United States, the winners are ___________ and the losers are _______
A. U.S. consumers of U.S. imports; U.S. producers of the U.S. import good B. China's consumers of China's imports; China's producers of its export good C. U.S. producers of the U.S. export good; U.S. consumers of U.S. imports D. China's consumers of China's export good; China's producers of its imported good
In a model of the saving rate, which of these relationships is most crucial?
A) the effect of the saving rate on government spending B) the effect of government spending on the saving rate C) the effect of the saving rate on taxes D) the effect of taxes on the saving rate E) the effect of the saving rate on the real wage
In 2013, corporate profits in the U.S. economy were about 14 percent of national income
a. True b. False Indicate whether the statement is true or false