Price floors are used as a method to
a. assure consumers that prices won't fall in the future
b. protect producers from paying high prices for the resources they use to produce goods
c. guarantee that there will be enough food for consumers
d. combat excess demand in the market
e. ensure sellers a minimum price for their goods
E
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Which of the following things does not have an objective cost?
A) Platinum B) Water C) Ski lift tickets D) Medical equipment E) None of the above has an objective cost.
The government can help solve the information asymmetry problem by:
A. making markets illegal where information asymmetry is significant. B. requiring the more informed party to reveal the missing information. C. excluding those who do not have complete information from the market. D. telling less-informed parties not to participate in the market.
If all prices adjusted immediately to balance the quantities supplied and demanded for all goods and services:
A. output gaps would be positive more often than they would be negative. B. potential GDP would rise much more quickly. C. cyclical unemployment would be positive. D. output gaps would not exist.
Suppose that input prices respond very slowly to output price. This will
A. increase the value of the multiplier. B. have no effect on the value of the multiplier. C. reduce the value of the multiplier. D. either increase or decrease the value of the multiplier depending on the value of the MPC.