A government policy that prevents the price of a good or service from falling below a specified level is called a price floor and usually results in
a. a shortage.
b. a surplus.
c. a black market.
d. fewer producers of the good or service.
e. a decrease in demand.
b
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Use the following list of factors that are related to the aggregate demand curve to answer the next question.1) Real-Balances Effect2) Household Expectations3) Interest-Rate Effect4) Personal Income Tax Rates5) Profit Expectations6) National Income Abroad7) Government Spending8) Foreign Purchases Effect9) Exchange Rates10) Degree of Excess CapacityWhich of the above factors best explain the downward slope of aggregate demand curve?
A. 7, 9, and 10 B. 4, 6, and 7 C. 2, 4, and 6 D. 1, 3, and 8
When a government allows raw materials and other intermediate products to enter a country duty free, this generally results in a(an)
A) effective tariff rate less than the nominal tariff rate. B) nominal tariff rate less than the effective tariff rate. C) rise in both nominal and effective tariff rates. D) fall in both nominal and effective tariff rates. E) rise in only the effective tariff rate.
"Environmental Awareness" Training Mega Manufacturing's corporate headquarters requires periodic classes in the green policies that it embraces. The Human Resource Department conducts the relevant classes and is run as a profit center with each plant
manager paying a transfer price per employee taking the classes. Recently, some of the plant managers have been hiring outside firms to conduct these classes. HR has complained to corporate that they will have to lay off staff if this continues but the plant managers reply that the outside firms are much cheaper. Why might corporate headquarters want to ban classes run by external firms anyway?
If there is both a decrease in immigration and an increase in workers' non-wage incomes, a. the supply of labor will increase
b. the supply of labor will decrease. c. the supply of labor will remain unchanged. d. the effect on the supply of labor will be indeterminate.