Suppose the equilibrium price of a tube of toothpaste is $2, and the government imposes a price floor of $3 per tube. As a result of the price floor,
a. quantity demanded decreases.
b. quantity supplied increases.
c. there is a surplus.
d. All of the above are correct.
d
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The feature of the above figure that indicates that the firm is a perfectly competitive firm is the
A) shape of the total cost curve. B) shape of the total revenue curve. C) fact that the total cost and total revenue curves are farthest apart at output is Q2. D) fact that the total cost and total revenue curves cross twice.
A recession with inflation is know by what term?
In Figure 20.2, the increase in Real GDP might reflect 
A. increased consumer confidence. B. a weaker currency. C. increased current government spending. D. increased worker productivity.
Which of the following is NOT an obstacle to economic development?
A. lack of capital investment B. a free market system C. political instability D. corruption