A price ceiling is
A) the lowest price a seller can charge without losing all of its customers.
B) a legal minimum price below which a good or service cannot be sold.
C) a legal price above which a good or service cannot be sold.
D) a nonprice rationing device.
C
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Jake sells Star Wars memorabilia on eBay. His annual revenue is $42,000 per year, the explicit costs of his business are $10,000, and the opportunity costs of his business are $18,000 per year. What is his economic profit?
A) $14,000 B) $24,000 C) $32,000 D) $34,000
What is a cyclically adjusted budget deficit or surplus, and how is it used to determine whether discretionary fiscal policy is expansionary or contractionary?
What will be an ideal response?
Suppose the government of New Country has fixed the value of its currency, the New Peso, at $1 per New Peso, but the market equilibrium value of the New Peso is $0.50 per New Peso. In order to maintain the official value of the New Peso the Central Bank of New Country must either ________ domestic interest rates, or ________the supply of international reserves by purchasing New Pesos
A. lower; decrease B. raise; decrease C. raise; increase D. lower; increase
Figure 7.2 shows a monopolist's demand curve. The marginal revenue from selling the third unit is:
A. $6. B. $8. C. $10. D. $44.