The size of a deadweight loss in a market is reduced by
A) government legislating a ceiling price.
B) government legislating a price floor.
C) market price being close to marginal cost.
D) creative destruction.
Answer: C
You might also like to view...
A cartel is a group of firms that attempts to
A) maximize joint revenue. B) maximize joint profit. C) behave independently. D) increase consumer surplus.
When costs occur in the future, the ________ the costs occurs, the ________ it is discounted and the ________ negative effect it has on the net present value.
A) sooner; less; larger ; B) later; more; smaller C) sooner; more; smaller D) later; more; larger
A decrease in the reserve requirement will cause a decrease in the money multiplier.
a. true b. false
A Chief Financial Officer (CFO) in an international company would most likely be responsible for all of the following activities EXCEPT ________.
A) managing short-term capital needs B) making financial decisions C) making investment decisions D) managing employee repatriation