A maximum wage law, as opposed to a minimum wage law, would be considered a
A. price ceiling.
B. price floor.
C. tax on businesses.
D. sales tax.
A. price ceiling.
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Which of the following is not a necessary condition for a flat BP curve?
A) perfect capital mobility B) perfect asset substitutability C) fixed exchange rates D) floating exchanges rates E) Both C and D
English mercantilism recognized the law of comparative advantage, thus permitting individuals to specialize in producing those goods and services which they could produce at relatively low opportunity costs and trading those items for those which
they could not. Indicate whether the statement is true or false
An outcome is socially optimal if it:
A. is determined by the government. B. maximizes total economic surplus. C. leaves no unexploited opportunities for individuals. D. is an equilibrium outcome.
Supply and demand is an economic tool that analyzes the total costs and benefits of alternative policies to different groups, such as producers and consumers.
a. true b. false