Assume that the market clearing price for portable power banks is $5, but that the maximum price that can be charged is $4. This is an example of
A) a price control that will lead to a surplus of portable power banks on the market.
B) a price floor that will lead to a shortage of portable power banks on the market.
C) markets failing to ration a fixed quantity of portable power banks.
D) a price ceiling that will likely lead to a shortage of portable power banks on the market.
Answer: D
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Exhibit 8-10 Price and cost data for a firm Q P AVC ATC MC 0 $12 ? ? ? 1 12 3 5 5 2 12 5 6 7 3 12 7.3 8 12 4 12 9.5 10 16 In Exhibit 8-10, MR is the same as which column?
A. Q. B. P. C. AVC. D. ATC. E. MC.
One of the challenges for development economists working in health care is to figure out a way to:
A. give incentives to families to make better health care choices. B. force doctors to practice good medicine. C. decrease the frequency of preventative medicine, such as immunizing children. D. All of these statements are true.
The income that individuals have after personal income taxes have been paid is called
A. disposable personal income. B. national income. C. gross domestic income. D. personal income.
Which of the following is a government expenditure, but is not a government purchase?
A) The federal government buys a Humvee. B) The federal government pays the salary of an FBI agent. C) The federal government pays out an unemployment insurance claim. D) The Federal government pays to support research on AIDS.