A number of states have a minimum wage that is higher than the federal minimum. In those states that impose such a minimum wage, it is more likely that the minimum wage acts as a binding:
A. price floor, causing excess supply in the market.
B. price floor, causing excess demand in the market.
C. price ceiling, causing excess demand in the market.
D. price ceiling, causing excess supply in the market.
Answer: A
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________ shows that if all resources are fully and efficiently utilized, more of one good can be produced only by producing less of another good
A) The mixed market system B) Comparative advantage C) The production possibilities frontier model D) Absolute advantage
A balanced budget is present when:
a. the economy is at full employment. b. the actual level of aggregate spending equals the planned level of spending. c. public sector spending equals private sector spending. d. government revenues equal government expenditures.
Goods that are heavily taxed, such as alcohol and cigarettes, often have:
a. relatively inelastic demand, such that the tax burden falls primarily on sellers and the deadweight loss associated with the tax is smaller than if demand were elastic. b. relatively elastic demand, such that the tax burden falls primarily on sellers and the deadweight loss associated with the tax is smaller than if demand were inelastic. c. relatively inelastic demand, such that the tax burden falls primarily on buyers and the deadweight loss associated with the tax is smaller than if demand were elastic. d. relatively elastic demand, such that the tax burden falls primarily on buyers and the deadweight loss associated with the tax is smaller than if demand were inelastic.
One of the reasons that Kodak and Fuji films advertise so much is that
a. they want to stimulate market demand b. each hopes to create a natural monopoly c. they are in a perfectly competitive industry where advertising is the difference between success and failure d. they want to develop brand loyalty e. they want to increase their price elasticities of demand