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.
Answer: D
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Which of the following is true?
a. Borrowers take bigger risks with their money than they would with other peoples' money b. Borrowers take bigger risks with other peoples' money than they would with their own c. Borrowers take big risks on investments regardless of whether it is their own money or not d. Borrowers should not be investing at all
The major difference between a proprietorship and a partnership is the
a. double taxation laws b. change in the liability of the owners c. profit earned d. number of owners e. ownership control over day-to-day operations
In a discrimination model, nepotism is best described as
A. a desire to advance social causes over maximizing profits. B. hiring minority workers but then firing them quickly. C. a preference to hire a certain type of worker, for example, a worker of one's same race. D. a preference to hire an integrated workforce. E. a desire to maximize profit regardless of who one hires.
Exhibit 7-16 Short-run cost curves for a competitive firm
?
In Exhibit 7-16, the firm should shut down in the short run if the market price of its product falls below:
A. $20 per unit. B. $30 per unit. C. $50 per unit. D. $80 per unit.