A price floor will be binding only if it is set
a. equal to the equilibrium price
b. above the equilibrium price.
c. below the equilibrium price.
d. either above or below the equilibrium price.
b
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The American Recovery and Reinvestment Act of 2009 was introduced in the hope of:
A. reducing government spending. B. achieving a balanced budget. C. providing healthcare to the uninsured. D. shortening the Great Recession.
Samantha was willing to pay $10 for a hamburger because she was hungry but she only paid $2.50. What is the marginal benefit Samantha gained from the hamburger?
A) $2.50 B) $7.50 C) $10.00 D) $12.50 E) None of the above answers is correct.
When a worker specializes in one task, he focuses on that one function in the production process, ignoring the whole system. This is likely to
A. increase the cross-training costs. B. result in functional myopia that reduces overall productivity. C. eliminate trade-offs since only one task is undertaken by each employee. D. lead to greater complementarity between one task and another.
What is owner's equity?
a. What a company owes b. What is left after the liabilities are satisfied c. What a company owns d. None of these