Refer to Figure 6.4. If the current market transactions occur only over the output level where a buyer's willingness to pay is greater than a seller's willingness to accept, the government could have set:
A. a maximum price at A
B. a minimum price at C.
C. a maximum price at C.
D. There is not sufficient information.
Answer: C
You might also like to view...
Crazy Cryptography is a software corporation that has 1,000 shares of stock in existence. The corporation has just surprised the market by announcing a new software package that will increase the company's after-tax profit by $500,000 each year, forever. If the interest rate is 8 percent (0.08) per year, by how much will the value of a single share of stock increase?
a. $500.00 b. $6,250.00 c. $5,000.00 d. $10,000.000 e. $8,333.33
One of the effects of patents is to
a. reduce incentives for innovation. b. give firms incentives to worry less about minimizing production costs. c. temporarily provide the patent owner with monopoly power. d. reduce the degree of monopoly power in the short run.
The Taylor rule allows the real long-term interest rate to:
A. be zero. B. be five percent less the inflation rate. C. fluctuate with the natural rate of interest. D. be one percent.
A prisoner's dilemma is a game in which:
A. one player has a dominant strategy and the other does not. B. the players' payoffs are larger when both play their dominant strategy compared to when both play a dominated strategy. C. the players' payoffs are smaller when both play their dominant strategy compared to when both play a dominated strategy. D. neither player has a dominant strategy.