A binding price ceiling means that:
A. there is currently a surplus of the relevant product.
B. government wants to stop a deflationary spiral.
C. government is imposing a legal price that is typically below the equilibrium price.
D. government is imposing a legal price that is typically above the equilibrium price.
Answer: C
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Torrie is thinking of starting up a small business selling hand-painted wine glasses. She asks her sister, Lisette, if she'd like to join her in setting up a partnership to start the business
What is one disadvantage in joining the partnership that Lisette should consider? A) Lisette should realize that, as an owner of the business, she will be personally responsible for the debts of the business. B) Lisette should realize that her profits in the partnership will always be less than Torrie's profits, since Torrie had the idea to start the business. C) Lisette should realize that Torrie will have complete control over the business because it was her idea. D) Lisette should realize that only Torrie will be allowed to own stock in the business as the founding partner.
A bank that maintains low NSF fees might also have relatively __________ loan rates, both parts of a strategy to attract __________-than-average borrowers
A) low; safer B) low; riskier C) high; safer D) high; riskier
The monopoly can shift the demand for its product rightward by
A) accommodating entry. B) advertising new uses for its product. C) moving along the learning curve. D) All of the above.
If parking spaces on a college campus are scarce, with quantity demanded during the “peak” hours, from 8 a.m. to 11 a.m., far greater than the number of spaces, an economist would propose as an efficient solution,
A. lowering the parking fees during those hours to compensate students for the longer search time. B. charging the same parking fees during all hours of the school day. C. raising parking fees during the peak hours to encourage some students to schedule classes during other hours when parking fees are lower. D. hiring more security guards to patrol for illegal parkers.