Unlike excise taxes, price ceilings create no deadweight loss.
Answer the following statement true (T) or false (F)
False
Price ceilings also create deadweight loss because the quantity bought and sold is below the optimal level.
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Advertising is a ________ cost that is incurred by ________
A) variable; monopolies B) variable; perfectly competitive firms C) fixed; perfectly competitive firms D) fixed; monopolistically competitive firms E) marginal; monopolistically competitive firms
The sticky-price theory of the short-run aggregate supply curve says that when the price level is higher than expected, some firms will have
a. higher than desired prices, which leads to an increase in the aggregate quantity of goods and services supplied. b. higher than desired prices, which leads to a decrease in the aggregate quantity of goods and service supplied. c. lower than desired prices, which leads to an increase in the aggregate quantity of goods and services supplied. d. lower than desired prices, which leads to a decrease in the aggregate quantity of goods and services supplied
Trade is based on
A. absolute advantage. B. comparative advantage. C. production costs. D. relative dollar prices.
The feasible means of converting raw inputs such as steel, labor, and machinery into an output are summarized by:
A. production. B. land. C. technology. D. capital.