In order for a price floor to have an impact on a market it must be set below the equilibrium price.
Indicate whether the statement is true or false.
Answer: False.
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Suppose India and France have the same PPF, shown in the figure above. Based on their current production points, which is India's most likely future PPF?
A) PPF1 B) PPF2 C) PPF0 D) either PPF0 or PPF1 E) None of the above because economic growth will not happen in India.
The economic system characterized by private ownership of resources and market is:
a. capitalism. b. communism. c. fascism. d. socialism.
Dean should play golf instead of preparing for tomorrow's exam in economics if:
A. Dean can play golf for free. B. the benefit of golfing is greater than the benefit of studying. C. he is irrational. D. the economic surplus from playing golf is greater than the economic surplus from studying.
The curve that illustrates that higher tax rates could lead to lower tax revenues if economic activity is severely discouraged is called:
A. the Laffer Curve. B. the Phillips Curve. C. the aggregate demand curve. D. the production possibility curve.