Which of the following statements is FALSE?
A) The rationing function of prices is not allowed to freely operate when the government imposes price controls.
B) Price controls may take the form of price ceilings or price floors.
C) Price ceilings below the equilibrium price can cause black markets to develop.
D) Rent controls are examples of price floors.
D
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If the combination of goods consumed at point C is preferred to combination D then
A) point C is on a higher indifference curve. B) point C is on the same indifference cure but at a point where the vertical axis value is greater than point D's vertical axis value. C) point C is on a lower indifference curve. D) point C is on the same indifference curve but at a point where the horizontal axis value is greater than point D's horizontal axis value.
Ray's Radios believed the synergies between radio production and battery production could be realized if he expanded. However, due to overseeing the battery expansion Ray devoted less time to the radio business leading to the radio unit costs increasing. Ray's Radios is experiencing
a. Economies of scale b. Economies of scope c. Diseconomies of scale d. Diseconomies of scope
What is the relationship between the MRP and MPP of labor?
a. MRP is MPP multiplied by the price of the good. b. MPP is MRP multiplied by the price of the good. c. MRP is MPP divided by the price of the good. d. MPP is MRP divided by the price of the good. e. MPP is the wage rate that in equilibrium equals MRP.
You're willing to wait in line an hour to ride the new roller coaster at the amusement park, but your friend has no interest in waiting that long. This indicates that the ________ cost of time to you is different from that to your friend
a. sunk b. variable c. opportunity d. average