The benefit of a price floor to ________ is ________.
A. consumers; the floor creates excess supply
B. producers; the selling price of the product is above the equilibrium price
C. consumers; the selling price of the product is below the equilibrium price
D. producers; the floor creates excess demand
Answer: B
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Money spent on the purchase of a newly constructed house is included in GDP as a part of ________.
A. household expenditures on durable goods B. personal saving C. gross domestic private investment D. personal consumption expenditures
Use the following graph showing the domestic demand and supply curves for a specific product in a hypothetical nation called Marketopia to answer the next question.
If the world price for this product is $2.00, then Marketopia will
A. import 200 units. B. import 400 units. C. export 200 units. D. export 400 units.
Given the scenario described, if the market price of hammers decreased from $15 to $13, which of the following can be said with certainty?
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. A. Bob’s Hardware would no longer participate in the market. B. Total producer surplus would decrease. C. Only Bob's Hardware will experience a drop in producer surplus. D. Bob’s Hardware would continue to participate in the market.
How large a firm becomes is determined by
A) the demand for its product. B) the availability of economies of scale. C) the availability of economies of scope. D) the availability of specialized managers.