A prominent argument against the use of price ceilings is:
A. they lead to a surplus and a waste of society's resources.
B. they are unfair.
C. they raise corporate profits.
D. they lead to rent seeking.
Answer: D
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________ are profits that accrue to whomever has the right to import the quota restricted good
A) Quota licenses B) Quota rents C) Quota prices D) None of the above.
If the reserve ratio is 0.25, the money multiplier is:
A. 20.0. B. 25.0. C. 4.0. D. 5.0.
In the figure above, when 4,000 pizzas are produced, the marginal benefit of a pizza ________ its marginal cost, which means ________ pizza is being produced
A) exceeds; too little B) exceeds; too much C) is below; too much D) is below; too little E) equals; the efficient quantity of
Aimee sells hand-embroidered dog apparel over the Internet. Her annual revenue is $128,000 per year, the explicit costs of her business are $42,000, and the opportunity costs of her business are $30,000. What is her economic profit?
A) $12,000 B) $56,000 C) $86,000 D) $98,000