A price floor set above the equilibrium price is not binding
a. True
b. False
Indicate whether the statement is true or false
False
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If firms that practice second degree price discrimination use more block prices,
A) both consumer surplus and welfare will decrease. B) both consumer surplus and welfare will increase. C) consumer surplus will decrease but welfare will increase. D) consumer surplus will increase but welfare will decrease.
Which of the following is NOT an advantage of a proprietorship?
A) They are easy to form and dissolve. B) Decision-making resides with one person—the owner. C) Liability of the owner is unlimited. D) Profits are only taxed once.
Which of the following will not cause a shift in the demand curve for DVDs?
A. a change in wealth B. a change in the price of DVDs C. a change in the price of Blu-ray discs D. a change in income
In the long run, imports will most likely be paid for with
A) exports. B) the sale of real and financial assets. C) the extension of credit. D) higher domestic unemployment.