The government of Economica announces that it will purchase its farmers' surplus of milk. From this announcement, you can infer that Economica has a
a. free market for milk.
b. price ceiling above the equilibrium price for milk.
c. price floor above the equilibrium price for milk.
d. price floor below the equilibrium price for milk.
c
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Moving from one point to another on a production possibilities frontier implies
A) increasing the production of both goods. B) changing the amount of factors of production that are employed. C) decreasing the production of both goods. D) increasing the production of one good and decreasing the production of another. E) holding the production levels of both goods constant.
Budget maximization by bureaus leads to
a. efficient budgets b. budgets greater than those desired by median voters c. budgets less than those desired by median voters d. budgets equal to those desired by median voters e. budgets less than those desired by the majority of voters
Explain the concept of liquidated damages with an example
Which statement is true?
A. Employment discrimination has ceased to exist. B. Women working full time now earn virtually the same amount as men. C. The poverty rate for blacks and Hispanics is three times the poverty rate for whites. D. Property income is mainly paid in the form of rent.