Will a price floor always result in a reduction in efficiency?
What will be an ideal response?
Not always. A price floor only results in inefficiency if it is effective-if it causes the market price to stay above the equilibrium price. If the price floor is below the equilibrium price, the price floor is ineffective and does not cause market inefficiencies.
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Which income maintenance program was started to support the nation's farmers?
A) Supplemental Security Income B) food stamps C) Earned Income Tax Credit program D) AFDC
A company is operating most efficiently when it is at
A. the break-even point. B. the shutdown point. C. both the break-even and shutdown points. D. neither the break-even nor the shutdown point.
The price of food relative to other goods has:
A. fallen, making it harder to live on less income because other goods cost so much. B. increased, making it easier to live on less income because other goods cost less. C. fallen, making it easier to live on less income. D. increased, making it harder to live on less income.
A classical economist believes that
A) if the economy was left alone, it would rarely operate at full employment. B) the economy is self-regulating and always at full employment. C) the economy is self-regulating and will normally, though not always, operate at full employment if monetary policy is not erratic. D) the economy is self-regulating and will normally, though not always, operate at full employment if fiscal policy is not erratic.