A minimum wage is an example of a
A. market clearing price.
B. price ceiling.
C. price floor.
D. black market.
Answer: C
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Higher government deficits ________ the supply of bonds and shift the supply curve to the ________, everything else held constant
A) increase; left B) increase; right C) decrease; left D) decrease; right
"Creating a free market for carbon-dioxide emission permits would only encourage firms to pollute more." Do you agree or disagree? Why?
What will be an ideal response?
It has been said that well-educated citizens are necessary for democracy. Discuss this idea in economic terms. What market imperfection might occur and what are the appropriate government policies to correct it?
What will be an ideal response?
A monopolistic competitive firm:
a. will always earn monopoly profits. b. will never earn monopoly profits. c. may earn monopoly profits in the short run. d. may earn monopoly profits in the long run.