A price floor:
A. Decreases the quantity producers are willing and able to supply relative to the equilibrium level.
B. Increases the quantity demanded relative to the equilibrium level.
C. Causes excess demand.
D. Creates a market surplus.
Answer: D. Creates a market surplus.
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In the United States, private health insurance companies
A) are all for-profit firms. B) can be either for-profit or not-for-profit firms. C) are all not-for-profit firms. D) are all government-run firms.
U.S. industries like steel, computers, and energy need to be protected from foreign competition to ensure which of the following?
(A) The protection of these industries as they develop. (B) The presence of these industries during a crisis. (C) The incentive for these industries to become more efficient. (D) The economic advantages caused by their production.
Which of the following characteristics would describe a product with an inelastic demand?
A. The good is considered a necessity and many substitutes for the product exist. B. The good is considered a necessity and few substitutes for the product exist. C. The good is considered a luxury and many substitutes for the product exist. D. The good is considered a luxury and few substitutes for the product exist.
The substitution effect is basically a trade-off between
A. work time and leisure time. B. the primary labor market and the secondary labor market. C. years of education and level of income. D. homogeneous jobs and non-homogeneous jobs.