Price floors and ceiling prices:
A. both cause shortages.
B. both cause surpluses.
C. cause the supply and demand curves to shift until equilibrium is established.
D. interfere with the rationing function of prices.
Answer: D
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With a given level of GDP, a decrease in the size of population would cause:
A) GDP per capita to decrease. B) life expectancy to decrease. C) GDP per capita to increase. D) life expectancy to increase.
A business cost is always
A) a sunk cost. B) a marginal cost. C) a consequence of managerial decisions. D) measurable if we use sophisticated accounting techniques.
According to the managerial efficiency theory of profit, above-normal profits can arise because of high-quality managerial skills
a. true b. false
Ignoring the issue of whether the CPI overstates the cost of living generally, the fact that the poverty line is adjusted using the overall CPI to adjust for overall inflation means that if the costs of necessities rises
A. faster than the overall CPI, the poverty line is understated. B. faster than the overall CPI, the poverty line is overstated. C. slower than the overall CPI, the poverty rate is overstated. D. slower than the overall CPI, the poverty rate is understated.