A price floor (support price) set above equilibrium:
a. is a minimum legal price set by government above equilibrium.
b. causes the quantity supplied to exceed the quantity demanded.
c. creates a surplus.
d. can represent the effect of a minimum wage.
e. all of these.
e
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In terms of the numbers of firms in the U.S. economy, the most common type of firm is the
a. corporation b. partnership c. sole proprietorship d. nonprofit organization e. limited partnership corporation
A discouraged worker is one who: a. is underqualified for his current job
b. dislikes his current job but is afraid to quit. c. drops out of the labor force because he cannot find a job. d. quits his job because the possibility of advancement was very low. e. is overqualified for his current job.
Which of the following is always true in competitive price-taker markets?
a. There are more sellers than buyers. b. Barriers to entry into the market are low. c. The products of firms in the industry are differentiated. d. The firms never earn economic profit.
The decision about whether to change prices frequently or infrequently is an application of the:
A. cost-benefit principle. B. scarcity principle. C. principle of increasing opportunity cost. D. principle of comparative advantage.