An example of an effective price ceiling would be the government setting the price of wheat at ________ per bushel when the market price is at $4.25 per bushel.
A. $3.75
B. $4.25
C. $7.75
D. $12.00
Answer: A
You might also like to view...
To assess whether or not a good is normal or inferior, economists are interested in the cross price elasticity of demand
a. True b. False Indicate whether the statement is true or false
What is the difference between a positive statement and a normative statement?
a. A positive statement is contestable; a normative statement is testable. b. A positive statement is subjective; a normative statement is contestable. c. A positive statement is testable; a normative statement is objective. d. A positive statement is objective; a normative statement is contestable.
An input's marginal revenue product is given by:
a. the input's marginal expense times marginal revenue. b. the input's marginal expense times the input's marginal physical productivity. c. marginal revenue times the number of units employed. d. the input's marginal physical productivity times marginal revenue of the firm's output.
Regarding government intervention in the economy, which of the following statements is not true?
A. Liberals tend to favor intervention. B. Conservatives are inclined to adhere to fixed rules. C. There is no guarantee that government intervention will have the desired effect. D. The effect of government actions on interest rates and spending is unknown. E. All of these responses are correct.