A price ceiling is
A. the lowest price a buyer can pay for a good without having to report the purchase to the government.
B. a legal maximum price that can be charged for a particular good or service.
C. the lowest price a seller can charge for a good without losing all her customers.
D. a legal minimum price that can be charged for a particular good or service.
Answer: B
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If the firm in Figure 17-4 above maintains its set price of P0, rather than dropping price to P1, the welfare loss to society due to this decision is
A) J + K. B) K - G. C) G + H. D) H + K. E) F + G + H.
Which of the following is not true about venture capitalists?
A. They provide financial support for entrepreneurial ideas. B. They are a critical link between entrepreneurial ideas and market reality. C. They issue shares of the IPO. D. They share in the risks and rewards of entrepreneurial ideas.
Congestion pricing
A. is a tax. B. keeps nasal passages clear. C. is never efficient. D. all of these answer options are correct.
The responsibility of paying for the Social Security benefits for currently retired individuals falls on
A. the retired people themselves. B. no one, since the government prints the money. C. current and future workers. D. only working people over 50 years of age.