Which of the following is the most likely explanation for the imposition of a price floor in the market for corn?
a. Policymakers have studied the effects of the price floor carefully and they recognize that the price floor will improve the efficiency of resource use.
b. Buyers and sellers of corn have agreed that the price floor is good for both of them and have therefore pressured policy makers into enacting the price floor.
c. Buyers of corn, recognizing that the price floor is good for them, have pressured policy makers into enacting the price floor.
d. Sellers of corn, recognizing that the price floor is good for them, have pressured policy makers into enacting the price floor.
D
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The above figure shows the U.S. market for chocolate. With international trade, the gain in total surplus is equal to
A) area B. B) area A + area B + area C + area D. C) area B + area C + area D + area E. D) area C + area D. E) area B + area C + area D.
In the United States, partnership profits are taxed at the business level and then are taxed again as personal income in the form of dividend payments
Indicate whether the statement is true or false
Explain how the following apparently contradictory statement can be true: Most spells of unemployment are short, and most unemployment observed at any given time is long-term
If monopolistic competitors are taking losses, in the long run firms ________ and market price will ________.
Fill in the blank(s) with the appropriate word(s).