A price floor is:
a. the lowest price a producer will accept.
b. the lowest price a consumer will pay.
c. a minimum price set by the government above equilibrium price.
d. a maximum price set by the government above equilibrium price
e. usually set equal to equilibrium price.
c
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Over the past few years, airlines have tended to compete in the market for intercontinental business class travelers on the basis of:
A) price. B) cost. C) timeliness of their flight schedules. D) amenities.
Suppose you made a 5% down payment on a house on January 1, 2013, and on January 1, 2014 you decide to sell the house. If the price of your house decreased by 10%, the return on your investment in the house would be
A) -5%. B) -10%. C) -50%. D) -200%.
If a country has the ability to produce a specific good with fewer resources than other countries, then it has:
A. A comparative advantage. B. A trade surplus. C. Favorable terms of trade. D. An absolute advantage.
The short-run average total cost curve is generally assumed to be:
A. downward-sloping. B. U-shaped. C. upward-sloping. D. horizontal.