When the government sets a maximum price that can be charged for a good or service, it creates
A. a price ceiling.
B. a price support.
C. a white market.
D. a price floor.
Answer: A
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Which is the more efficient use of one's tight budget: going to a first-run movie at $7.50 or waiting for the video to be available through Netflix?
A) Going to the first-run movie B) Waiting for the video C) Doing neither, especially if one's budget is tight. D) It depends on the chooser's own evaluations of costs and benefits.
If the short-run aggregate supply increases by less than the long-run aggregate supply, then, at the short-run equilibrium
A) GDP will be below potential GDP. B) aggregate demand will increase. C) GDP will be equal to potential GDP. D) GDP will be above potential GDP.
Bob views apples and oranges as perfect substitutes in his consumption, and MRS = 1 for all combinations of the two goods in his indifference map
Suppose the price of apples is $2 per pound, the price of oranges is $3 per pound, and Bob's budget is $30 per week. What is Bob's utility maximizing choice between these two goods? A) 4 pounds of apples and 6 pounds of oranges B) 5 pounds of apples and 5 pounds of oranges C) 10 pounds of oranges and no apples D) 15 pounds of apples and no oranges E) none of the above
Today, the U.S. unemployment rate among black teenagers is
a. lower than the rate for all teenagers. b. lower than the rate of black adults. c. the highest rate among all U.S. workers. d. the middle rate among all U.S. workers.