A legal minimum on the price at which a good can be sold is called a
a. price subsidy.
b. price floor.
c. tax.
d. price ceiling.
b
You might also like to view...
Consider a fall in the wage rate. How does the substitution effect change the amount of labor that a firm hires? How does the scale effect change the amount of labor that a firm hires? What do these effects imply about the firm's long-run demand for labor?
What will be an ideal response?
In 1989, Sears and Roebuck closed its stores and remarked every price in its stores to reflect a new "lower everyday" pricing strategy. Sears must have believed at that time that
A) the profit from extra sales were less than additional menu costs. B) the menu costs were less than the gain in profits from additional sales. C) extra liquidity was more important than menu costs. D) B and C.
Disclosure laws:
A. are an example of how government attempts to assert control over what we eat. B. always help solve information asymmetry, but can cause other problems. C. can result in information overload. D. All of these statements are true.
A decrease in aggregate demand and the subsequent cutbacks in production lead to:
a. frictional unemployment. b. cyclical unemployment. c. cost-push unemployment. d. structural unemployment. e. transitory unemployment.