If the government sets a maximum price at which a good or service can be sold, it thereby creates
A. a free market price.
B. a price floor.
C. a black market price.
D. a price ceiling.
Answer: D
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Which type of businesses earns the majority of profits in the United States?
A) corporations B) sole proprietorships C) partnerships D) none of these
Which of the following is correct? When actual leakages exceed actual injections, then:
a. Inventories rise, unemployment tends to rise, and prices tend to fall. b. Inventories rise, unemployment tends to fall, and prices tend to rise. c. Inventories fall, unemployment tends to rise, and prices tend to rise. d. It is impossible for these two to be unequal. e. The nation falls into an economic recession.
Figure 4-25
Refer to . The equilibrium price before the tax is imposed is
a.
P1.
b.
P2.
c.
P3.
d.
impossible to determine from the figure.
Banks primarily make a profit by ______.
a. charging their borrowers more interest than they give their depositors b. paying a portion of customer deposits for claims, and keeping the rest c. earning a commission from each sale of stock they make d. charging fees each time they facilitate an exchange