Price floors
A) provide free market incentives for producers.
B) create surpluses by setting the price above equilibrium.
C) create shortages by setting the price above equilibrium.
D) are used by advocates of the free market.
Answer: B
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A decrease in the U.S. price level will: a. decrease U.S. imports
b. decrease U.S. exports. c. decrease the quantity of RGDP demanded in the United States. d. both (a) and (c)
If people underestimate the effects of expansionary policy, an increase in the growth rate of aggregate demand will tend to increase real GDP: a. in both the short run and the long run. b. in the short run but not the long run
c. in the long run but not the short run. d. in neither the short run nor the long run.
When a firm is operating at an efficient scale,
a. average variable cost is minimized. b. average fixed cost is minimized. c. average total cost is minimized. d. marginal cost is minimized.
Which of the following best describes marginal cost?
a. The sum of fixed cost and variable cost b. Total cost divided by the quantity of output produced c. Variable cost divided by the quantity of output produced d. Change in total cost resulting from a one-unit change in output