Price controls
A) exist when firms decide that they want to charge a higher price for their product.
B) exist when consumers boycott a product.
C) are government-mandated minimum or maximum prices that may be charged for goods.
D) are the benefit of discount stores like Sam's Club.
Answer: C
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Giving in to the demand of protestors, suppose the French government reduces the tax on gasoline by 15 percent. Neither the demand for gasoline nor the supply of gasoline is perfectly elastic or inelastic
As a result of the tax cut, the price for a gallon of gasoline paid by buyers A) falls by 15 percent. B) rises by 15 percent. C) falls by less than 15 percent. D) rises by less than 15 percent. E) falls by more than 15 percent.
The above figure shows the cost curves for a competitive firm. The firm will incur economic losses if the price is less than
A) $0. B) $5. C) $10. D) $11.
Expansionary fiscal policy consists of:
a. increasing government spending. b. increasing payroll taxes to finance health care. c. decreasing government spending. d. raising the minimum wage.
A consumer buys toys made in China. The value of the toys is included only in the net exports component of GDP
a. True b. False Indicate whether the statement is true or false