One of the problems created by price floors is that
a. consumers complain about high prices
b. firms have no incentives to reduce cost
c. excess supply is created
d. people must learn to cope with excess demand
e. technological change is significantly impacted
C
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A government policy that allows retirement savings to accumulate tax-free is an example of a policy to promote economic growth by:
A. increasing physical capital. B. increasing the availability of natural resources. C. improving technology. D. increasing human capital.
Total profit equals
A. TR ? TC. B. average profit times total output. C. total sales revenue minus total cost. D. All of the responses are correct.
The rate of return on bonds is lower than on stocks over time because
A) bond holders cannot diversify. B) bonds have a lower standard deviation in returns. C) stocks have less non-diversifiable risks than bonds. D) bonds are subject to more random risks than stocks.
Monopolistically competitive firms have monopoly power because they
A) face downward sloping demand curves. B) are great in number. C) have freedom of entry. D) are free to advertise.