A price floor that is binding:
A. must be set above the equilibrium price, and will likely cause a shortage.
B. must be set below the equilibrium price, and will likely cause a shortage.
C. must be set above the equilibrium price, and will likely cause a surplus.
D. must be set below the equilibrium price, and will likely cause a surplus.
C. must be set above the equilibrium price, and will likely cause a surplus.
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Someone in Germany has just ordered a U.S. car to be exported to Germany. In the U.S. balance of payments, this purchase is a(n)
A) accounting identity. B) special draw. C) surplus item. D) deficit item.
Which of the following is a necessary condition for price discrimination to be profitable?
a. All consumers must have an identical demand for the product. b. Groups of consumers with different demand elasticities must be easily distinguishable. c. The market demand for the product must be highly elastic. d. It must be possible for buyers to resell the product at a low cost.
Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $4 and the wage rate is $70 per day, how many workers should Winnie employ to maximize his profit?
A) 1 B) 2 C) 3 D) 4
Establishing a state employment agency that speeds up the process of matching unemployed workers with unfilled jobs is an attempt to lower
A) unnatural unemployment. B) seasonal unemployment. C) cyclical unemployment. D) frictional unemployment. E) structural unemployment.