A black market may arise when government imposes a price ceiling
a. True
b. False
Indicate whether the statement is true or false
True
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A decrease in transfer payments or an increase in taxes would ____ disposable income of households and thus ____ in consumption purchases
a. increase; increase. b. increase; decrease. c. decrease; increase. d. decrease; decrease.
During its run on Broadway, the play The Producers regularly sold out all available tickets at the St. James Theater. The theater could have raised ticket prices from $75 to $125 and still sold all available tickets but chose not to do so. The best
explanation for this decision is A) theater owners are unaware of the elasticity of demand for Broadway shows. B) theater owners do not want to raise their prices on weekends, when demand is high, and then have to lower prices during the week, when demand is lower. C) firms sometimes give up profits in the short run to keep their customers happy and increase their profits in the long run. D) theater owners are not motivated to maximize their profits.
The portion of a corporation's profits that a firm pays out each period to its shareholders is a
A. capital gain. B. dividend. C. promissory note. D. corporate bond.
A profit-maximizing firm will continue to employ land until
A. MRPLAND = 0. B. MRPLAND = MPLAND. C. MRPLAND = PLAND. D. MPLAND = PLAND.