A government sometimes creates an excess supply of a product by setting a minimum price at which the product may be sold to consumers. This is sometimes called a:
A. price ceiling.
B. price floor.
C. tax.
D. subsidy.
Answer: B
You might also like to view...
In the Wealth of Nations, Adam Smith wrote about how countries could increase their consumption of goods and services through specialization and trade with other countries.
Answer the following statement true (T) or false (F)
A monopoly's demand curve for labor
A) is below that of a competitive market. B) is the same as that of a competitive market. C) is above that of a competitive market. D) equals p ? MPL.
The present discounted value of a future payment will decrease when the
A. Opportunity cost of money decreases. B. Interest rate increases. C. Future payment is closer to the present. D. Risk of nonpayment increases.
When a minimum-wage law forces the wage to remain above the equilibrium level, the result is
a. both a shortage of labor and a shortage of jobs. b. a shortage of labor and a surplus of jobs. c. a surplus of labor and a shortage of jobs. d. both surplus of labor and a surplus of jobs.