Audrey is a corn farmer. This year the weather was fabulous, and she grew the best crop she has ever grown. Instead of being happy, she is sad because the great weather led to a huge corn surplus, and the price per bushel is much lower than usual. What type of government policy imposed on corn would help Audrey in this case?
a. price ceiling
b. price floor
c. producer tax
d. distributor tax
b. price floor
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If hiring a minority would drive away customers, then discriminating against that minority might increase profits for the business that is doing the hiring
Indicate whether the statement is true or false
The public education system is an example of
A) an income maintenance program. B) a negative income tax. C) the poor paying more than the market price for a service they receive. D) a subsidized service.
A monopolist would not be able to make a positive profit at any price output combination when
A. the minimum point of the average total cost curve lies to the right of the minimum of the average variable cost curve. B. the average variable cost curve is everywhere above the marginal revenue curve. C. marginal cost is less than average total cost for one more unit of output. D. the average total cost curve is everywhere above the demand curve.
Other things equal, an increase in the price level ________ the equilibrium interest rate and ________ equilibrium output.
A. increases; decreases B. decreases; increases C. decreases; decreases D. increases; increases