The minimum price for a good set by the government above the equilibrium price is called a:
a. price ceiling.
b. price floor.
c. parity price ratio.
d. market-generated price.
e. deficiency price.
b
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The "gifts of nature" are included as part of which factor of production?
A) labor B) land C) capital D) entrepreneurship
What are the three basic economic questions that must be answered by all societies?
What will be an ideal response?
The real business cycle model begins with the assumption that ________
A) wages and prices are sticky B) wages and prices are completely flexible C) the velocity of money is a constant D) nominal variables are superior to real variables in describing economic activity
Evidence suggests that as the importance of what's at stake grows, loss aversion:
A. does not change. B. is reversed. C. becomes much less pronounced. D. becomes even more pronounced.