In order to be effective, a price floor
A) must be set below equilibrium price.
B) must be set above equilibrium price.
C) must be set at equilibrium price.
D) must be a zero price.
B
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An increase in stock prices can be considered as an increase in:
a. a leading indicator. b. a coincident indicator. c. the consumer price index. d. the consumer leverage ratio. e. a lagging indicator.
Approximately what percentage of the world's economies experience scarcity?
a. 10% b. 40% c. 85% d. 100%
The fact that the price of diamonds is higher than the price of water
A) cannot be explained by behavioral economics or consumer choice theory. B) is an outcome of irrational behavior in consumer choice theory. C) can be explained only by behavioral economics but not by consumer choice theory. D) can be explained as the outcome of a consumer optimum in consumer choice theory.
To say that demand is elastic means that
A) people do not like the good very much. B) quantity demanded not very responsive to price changes. C) relatively small changes in price lead to relatively large changes in quantity demanded. D) relatively small changes in quantity demanded lead to relatively small changes in price.