The major drawback of a price ceiling is
a. it causes a surplus.
b. government regulations of this kind are difficult to enforce.
c. it causes a shortage.
d. There is no drawback.
c
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In what way did the Dodd-Frank Act reduce bank revenue?
A) It increased the amount banks had to pay on interest to depositors. B) It reduced fees banks could charge when customers took out loans. C) It reduced the amount of interest banks could charge on mortgages. D) It capped the fees that banks could charge stores for debit card transactions.
On a straight-line production possibilities frontier, which of the following is true?
a. The problem of scarcity does not exist. b. Resources are imperfect substitutes. c. Opportunity costs are constant. d. Technology is rapidly expanding. e. Some resources are not being used efficiently.
Products can be differentiated
A) if the buyers are homogeneous and their number increases. B) by location and by brand name. C) only by brand name. D) none of the above
The free rider problem is caused by the:
A. "rivalness" in consumption of a good leading to the undersupply of it. B. incentive to oversupply the good since it is nonrival in consumption. C. nonexcludability of a good leading to the undersupply of it. D. "rivalness" in consumption of a good leading to the overconsumption of that good.