Refer to the above figure. If government sets the maximum legal price of gasoline at $2 per gallon, then the $2 limit acts as
A. an equilibrium price.
B. a just price.
C. a price floor.
D. a price ceiling.
Answer: D
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Figure 7-8
Of the graphs in Figure 7-8, which represents fixed cost?
A. 1 B. 2 C. 3 D. 4
The total cost of an accident is equal to the ________ plus the ________.
A) expected cost of the bad outcome; the cost of actions taken to decrease the expected cost of the bad outcome B) expected cost of the bad outcome; the cost of actions taken to increase the expected cost of the bad outcome C) expected marginal cost of the bad outcome; the fixed cost of actions taken to decrease the expected cost of the bad outcome D) expected marginal cost of the bad outcome; the cost of actions taken to increase the expected cost of the bad outcome
A recession will occur if an economy’s actual GDP ____ its potential GDP.
A. rises above B. equals C. falls below D. grows faster than
A likely example of substitute goods for most people would be
a. tables and chairs. b. bicycles and helmets. c. apple juice and orange juice. d. coffee and sugar.