An effective price floor on wheat will:
A. force otherwise profitable farmers out of business.
B. result in a shortage of wheat.
C. clear the market for wheat.
D. result in a surplus of wheat.
Answer: D
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You find that to attract a sufficient number of workers you have to pay them more dollars. Given the price of your output you determine you are paying your workers more in goods than before. Which of the following has risen?
a. The real and nominal value of the wages you pay. b. The real but not the nominal value of wages you pay. c. The nominal but not the real value of the wages you pay. d. Neither the real nor the nominal value of the wages you pay.
The category of GDP called gross private domestic investment includes
A. all purchases of capital goods. B. all exports of goods and services. C. purchases made by private individuals. D. inventories held over from previous years.
Firms operating in a market situation that creates ___________________, sell their product in a market with other firms who produce identical or extremely similar products.
A. a perfect monopoly B. perfect competition C. an oligopoly D. a free market
Discuss the characteristics of a perfect competitive industry and which real-life industries come closest to this type of market structure.
What will be an ideal response?