How are price ceilings and price floors similar?
a. They both clarify price signals sent to consumers and producers.
b. They both cause persistent shortages.
c. They both distort price signals sent to consumers and producers.
d. They both cause persistent surpluses.
c. They both distort price signals sent to consumers and producers.
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The problem of bringing economic agents together to trade is referred to as the:
A) incentive problem. B) coordination problem. C) correspondence problem. D) scarcity problem.
Define macroeconomics
What will be an ideal response?
Assume the marginal revenue from each additional unit of a good sold is 0. In this case, we can conclude that demand for the good is:
A) unit elastic B) perfectly elastic. C) perfectly inelastic. D) relatively inelastic.
The owners of a corporation are
A) the employees of the firm. B) the shareholders. C) completely in control of the firm. D) taxed only once.