What condition is necessary for a price floor to have an impact on a market? Describe two effects that a price floor can have on a market
In order for a price floor to be effective, it must be set above the current equilibrium price for that good. Some of the effects that might arise as a result are: surpluses and fewer exchanges.
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The above figure shows the market for DVDs. The government decides that all citizens deserve to watch affordable DVDs so a price ceiling of $12 per DVD is placed on DVDs. After this price ceiling is in effect, producer surplus equals ________
A) $900,000 B) $400,000 C) $200,000 D) $100,000 E) $1,800,000
Which of the following statements is true?
A) Economics is concerned with money, not choices. B) Economics can be used to predict people's actions. C) Economics does not provide insights into human behavior. D) Economic reasoning tends to reduce the quality of decision making.
Technological efficiency occurs when it is not possible for a firm to get more output from the inputs it is currently using
Indicate whether the statement is true or false
Those who are chronically poor are defined as those who spend:
A. three or more consecutive years in poverty. B. at least two consecutive months within a year in poverty. C. three or more years in poverty. D. at least six consecutive months within a year in poverty.