Which term refers to a legally established minimum price that firms may charge?
A) a price ceiling
B) a subsidy
C) a price floor
D) a tariff
Answer: C
You might also like to view...
As we increase the production of computers, we find that we must give up larger and larger amounts of DVD players per computer
A) This situation illustrates increasing opportunity cost. B) As a result, we should specialize in the production of DVD players. C) The production possibilities frontier for computers and DVD players is a straight line. D) DVD players will be more highly regarded by consumers than computers.
Which nations make up the G8?
What will be an ideal response?
Deviations from purchasing power parity will be increasingly higher as international trade tariffs become more restrictive. This is mainly because:
a. arbitrage activities become less profitable. b. governments discourage purchasing power parity. c. the interest rate parity fails to hold. d. goods become more differentiated across countries. e. individuals develop hatred toward closed economies.
Government controls over market prices frequently “backfire.”
Answer the following statement true (T) or false (F)