Government can intervene in the market through
a. Price floors
b. Price ceilings
c. Taxes
d. All the above
d
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What must be true for a consumer to buy a good or service?
A) The price must be equal to or less than the marginal benefit. B) The total benefit received must equal the total spent to buy the good or service. C) The consumer must be able to obtain some consumer surplus. D) The consumer must not be able to produce the product. E) The price must be equal to or greater than the marginal benefit.
An example of direct foreign investment is given by
A) the sale of U.S. government bonds to foreigners. B) the sale of General Motors bonds to foreigners. C) the behavior of multinational corporations such as Ford. D) all of the above.
An increase in the consumer sentiment index indicates that consumers are
a. becoming more optimistic about their future income and employment prospects. b. becoming less optimistic about their future income and employment prospects. c. expecting the inflation rate to rise in the near future. d. expecting the inflation rate to fall in the near future.
The time it takes the firms to respond to a higher or a lower interest rate is referred to as:
A. the inside lag for monetary policy. B. the inside lag for fiscal policy. C. the outside lag for monetary policy. D. the outside lag for fiscal policy.