What is a price floor?
A legislation fixing the minimum price of a commodity above the market-clearing or the equilibrium price is called a price floor.
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Among a set of alternatives with the same benefits, an individual is said to optimize if she chooses an alternative that:
A) has the lowest total cost. B) has the highest total cost. C) has the highest indirect cost. D) has the lowest opportunity cost.
Which of the following items is not a component of the expenditure approach to measuring U.S. GDP?
A) purchases of food made by families B) Social Security payments made by the government C) purchases of U.S.-made movies by Europeans D) purchases of new homes made by families
A high price-earnings ratio for a stock indicates that either the stock is
a. undervalued or people are relatively optimistic about the corporation's prospects. b. overvalued or people are relatively optimistic about the corporation's prospects. c. overvalued or people are relatively pessimistic about the corporation's prospects. d. undervalued or people are relatively pessimistic about the corporation's prospects.
When we speak of expansionary fiscal policy, we are talking about policymakers __________ government spending, or __________ taxes, or both
A) decreasing; decreasing B) increasing; increasing C) increasing; decreasing D) decreasing; increasing