An argument against price floors is:
A. producers will reduce the quality of the goods they sell.
B. the cost to taxpayers if the government buys all surplus.
C. they transfer surplus from producers to consumers.
D. non-price rationing must occur, and can lead to consumers waiting in line.
Answer: B
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What does international voluntary trade do?
(a) Exploits small countries (b) Benefits all trading partners (c) Places labor unions at an unfair disadvantage (d) Forces productive domestic firms to close their doors
The concepts of exogeneity, strict exogeneity, and predeterminedness
A) are defined in such a way that strict exogeneity implies exogeneity. B) can be used interchangeably. C) are defined in such a way that exogeneity implies strict exogeneity. D) correspond to endogeneity, strict endogeneity, and lagged endogenous variables.
The egalitarian principle of income refers to
A) each person being paid differently. B) each person receiving the same income. C) each person receiving tax breaks. D) each person working the same number of hours.