Which of the following will tend to occur if price floors are imposed on a product?
A. Persistent surpluses
B. Problems of disposal of goods
C. Disguised discounts developing to eliminate excess production
D. Overinvestment in the industry
E. All of these responses are correct.
Answer: E
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Pat earns $1,000 per week and spends $850 per week on living expenses, puts $50 in a savings account, and buys $100 worth of shares in a stock mutual fund. Pat's saving is ________, and Pat's saving rate is ________.
A. $150; 15% B. $50; 5.9% C. $50; 5.0% D. $100; 10%
The law of comparative advantage implies that a nation, individual, or region should produce those economic goods for which it
a. has an absolute advantage. b. is a low opportunity cost producer. c. is a high opportunity cost producer. d. pays the highest wage rate.
A negative income tax system is designed to
a. provide in-kind benefits to the poor. b. provide a minimum income to the poor. c. reduce taxes on the rich when their incomes surpass the maximum income tax bracket. d. subsidize food consumption in poor families.
The saws, lathes, and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called
a. human capital. b. physical capital. c. natural resources. d. technological knowledge.