With a price floor:
A. consumer surplus falls and producer surplus falls.
B. consumer surplus increases and producer surplus falls.
C. consumer surplus falls and producer surplus can increase or decrease.
D. consumer surplus increases and producer surplus increases.
C. consumer surplus falls and producer surplus can increase or decrease.
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Economies of scale are said to exist when inputs are increased by some percentage and output increases by a(n) __________ percentage, causing unit costs to __________.
Policies adopted by a country's central bank that influence interest rates and credit conditions, which in turn influence consumer and business spending are called:
A) monetary policy. B) fiscal policy. C) foreign policy. D) exchange rate policy.
In a simplified system where all banks have uniform reserve requirements and checkable deposits are the only form of money, the money multiplier is equal to 1 over the required reserve ratio
a. True b. False Indicate whether the statement is true or false
One major fault with factor pricing analysis is that marginal productivity theory merely attempts to justify the income distribution that the capitalist system yields.
Answer the following statement true (T) or false (F)