A price floor set below the equilibrium price will cause which of the following?
A. an increase in demand
B. a surplus
C. a shortage
D. None of these
Answer: D
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What does unlimited liability mean?
A) The personal assets of the owners cannot be claimed if the business is bankrupt. B) Only employees can have a claim on the assets of the business. C) The owners of the business are personally responsible for paying expenses incurred by the business. D) Anybody with a liability against a firm can claim up to three times their liability.
In order to protect key industries, some countries impose taxes on their exports instead of imports, mainly because it is easier to collect taxes from the export industry
a. True b. False Indicate whether the statement is true or false
Which of the following is an example of a price control policy?
a. Increasing the income tax rate b. Setting a minimum wage level c. Mandating a 2 percent tax on imported automobiles d. Mandating higher taxes on alcoholic beverages in the state
A positive temporary supply side shock will:
A. increase the level of potential output in the long run. B. decrease the price level in the long run. C. increase the price level in the long run. D. have no effect in the long run.