Which of the following is unlikely to occur as a result of a price support program?
A) A reduction in consumer surplus
B) A reduction in producer surplus
C) An increase in quantity purchased
D) An economic cost to government
E) Improved economic efficiency
B
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Brokerage houses may differ in the
A. fees they charge. B. services they provide. C. stock exchanges on which they hold seats. D. All of these responses are correct.
Markets in which the currencies of different countries across the world are traded are called:
a. stock markets. b. foreign exchange markets. c. loanable funds markets. d. commodity markets. e. money markets.
When you go to a baseball game your ticket specifies your seat and section of the stadium where the seat is located. Assuming the seats all cost nearly the same to install and maintain, what pricing strategy would you expect the team officials to adopt if a full stadium with a maximum of satisfied customers and at least normal profit is the goal?
A. Price all seats at cost, which includes normal profit. B. Price above cost for seats with the best view and below cost for less desirable seats so the gain from those willing to pay more for the best seats offsets the loss on the cheap seats. C. Price all seats above cost so if there are empty seats, at least total costs can hopefully be covered. D. Price above cost for the seats with the best view and price at cost for the rest even if this means the stadium is not full. At least total cost with normal profit will be achieved.
Balancing the budget over the business cycle involves running _________ during recession years and _____ during economic booms.
Fill in the blank(s) with the appropriate word(s).