Governments establish price floors when it is believed the market equilibrium price is too high
Indicate whether the statement is true or false
F
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Refer to above figure. Assume that Boeing is the first to enter the Hungarian market. Without a government subsidy what price would they demand, and what would be their total profits?
What will be an ideal response?
A family on a trip budgets $800 for restaurant meals and fast food. The family can buy 16 restaurant meals if they don't buy any fast food. What is the price of a fast-food meal for the family?
a. $5 b. $16 c. $20 d. $50 e. it is impossible to tell from the information given
On a production possibility frontier, the idea that production and consumption are limited is expressed by
A) the rate at which the frontier slopes downward B) the rate at which the frontier slopes upward C) the items on the X and Y axes D) the frontier itself
Mike's housekeeper charges $30 for mowing his lawn. Refer to the scenario above. Which of the following will happen if Mike decides to mow his lawn by himself?
A) GDP will increase. B) GDP will decrease. C) Per capita income will increase. D) GDP will remain unchanged.