A supply curve that is a vertical straight line indicates that:
A. production costs for this product cannot be calculated.
B. the relationship between price and quantity supplied is inverse.
C. a change in price will have no effect on the quantity supplied.
D. an unlimited amount of the product will be supplied at a constant price.
Answer: C
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If policy makers believe that the equilibrium wage rate is too low, policy makers can raise wages by legislating a minimum wage, that is, a wage
A) ceiling above the equilibrium wage. B) ceiling below the equilibrium wage. C) floor above the equilibrium wage. D) floor below the equilibrium wage.
What are the transactions that the balance of payments accounts record?
What will be an ideal response?
Alan runs the only taxi service in town. Whenever he raises his fares above $.30 per mile, other taxi firms enter and compete with him to drive his fares back to $.30 per mile. Describe what kind of market Alan is operating in and if it is plausible that Alan might set his fare so as to achieve efficiency? Explain
In the calm before the storm of the early 1990s recession, the economy was fueled by many factors including debt-financed purchases by some firms of all the stock or assets of other firms. These purchases were known as
a. hostile takeovers b. junk bonds c. leveraged buyouts d. stock swaps e. derivatives