A government policy that prevents the price of a good or service from falling below a specified level is called a price floor and usually results in
A. a shortage.
B. a surplus.
C. a black market.
D. fewer producers of the good or service.
E. a decrease in demand.
Answer: B
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Refer to the scenario above. What is likely to be the impact on Firm B's sales if Firm B decides to sponsor the event while Firm A decides not to sponsor the event?
A) A 10% increase in sales B) A 7% increase in sales C) A 2% increase in sales D) A 5% increase in sales
One reason why many low-income countries experience low rates of growth is because of low rates of saving and investment in those countries
Indicate whether the statement is true or false
A nondiscriminating monopolist earning positive short-run economic profit determines that its current marginal cost is $15 and its current marginal revenue is $20 . To maximize profit, a firm should
a. raise price and increase output b. raise price and decrease output c. maintain a constant price and increase output d. reduce price and increase output e. shut down
The evidence for the U.S. suggests that the natural rate of unemployment has
A) increased by more than 5% since the 1960s. B) increased by 1 to 2% since the 1960s. C) decreased from 2000-2007, lower than it had been in the 1980s. D) decreased by more than 5% since the 1960s. E) fluctuated over time since the 1960s.