A government-set price floor on a product
A. is intended to benefit the buyers of the product.
B. will attract more resources towards the production of the product.
C. does not interfere with the rationing function of price in a market system.
D. will drive resources away from the production of the product.
Answer: B
You might also like to view...
Which type of unemployment is associated with the slump in aggregate demand that accompanies a recession?
A) structural unemployment B) cyclical unemployment C) expansionary unemployment D) frictional unemployment
Firms in an oligopoly often do not collude with each other because ________
A) collusion lowers profit B) collusion increases the cost of production C) collusion is illegal D) collusion increases competition
Scientific evidence suggests that consumption of foods rich in fiber lowers cholesterol. As a result, the demand for bran increases at every price by 5,000 bushels and the supply curve for bran is perfectly price elastic. The quantity of bran consumed will
a. not change. b. change unless the demand curve is perfectly inelastic. c. rise by exactly 5,000 bushels. d. not rise by exactly 5,000 bushels unless the demand curve is perfectly inelastic.
On January 1, 2008, Edward invested $10,000 at 5 percent interest for one year. The CPI on January 1, 2008 stood at 1.60. On January 1, 2009, the CPI was 1.76. The real rate of interest earned by Edward was ________ percent.
A. 5 B. -5 C. 10 D. 0