A price floor is:
A. the lowest price a producer will accept.
B. the lowest price a consumer will pay.
C. a minimum price set by the government above equilibrium price.
D. a maximum price set by the government above equilibrium price
Answer: C
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To maximize the economic pie, government should
A) provide only those public goods whose benefits outweigh their costs. B) provide no public goods. C) provide only those public goods whose costs outweigh their benefits. D) provide all possible pure public goods.
If any two indifference curves cross, then the principle of _____ will be violated
a. monotonicity b. heterogeneity c. reflexivity d. homogeneity
Long-run increases in living standards, as measured by real GDP per person, are primarily the result of increases in:
A. government budget surpluses. B. the money supply. C. population. D. average labor productivity.
The Depository Institutions Deregulation and Monetary Control Act of 1980
A. made the Federal Reserve's job of managing the money supply a lot easier. B. made the Federal Reserve's job of managing the money supply a lot harder. C. had no effect upon the Federal Reserve's job of managing the money supply.