An effective government imposed price ceiling will result
A) in a surplus on the market.
B) in a shortage on the market.
C) in additional revenue for the government.
D) in prices for the product falling in the future.
B
You might also like to view...
Financial intermediaries reduce the costs of negotiation by
A) investing in a large number of projects with independent returns. B) gaining expertise in evaluating and monitoring investments. C) investing in a small number of projects with independent returns. D) pooling funds.
What do we mean when we state that a particular principal-agent payment scheme is inefficient?
A) The principal and agent could find another agreement that would increase the sum of the owner's revenue and the worker's payment. B) The agreement involves the highest level of effort for the worker. C) The agreement leads to the lowest level of revenue for the owner. D) The sum of the income taxes paid by the owner and the worker is too high.
Economists assume that the goal of a firm is to
A) maximize economic profits. B) sell as many units as possible. C) maximize gross revenues. D) be the largest firm in its industry.
If one includes in-kind income in the calculation, the
A. official poverty rate becomes meaningless. B. incidence of poverty actually increases. C. poverty rate is unchanged. D. fraction of the population in poverty drops.