If a price ceiling is not binding, then
a. the equilibrium price is above the price ceiling
b. the equilibrium price is below the price ceiling.
c. it cannot be legally enforced.
d. None of the above is correct because all price ceilings must be binding.
b
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An example of an international policy externality is
A) the locomotive effect. B) the liquidity effect. C) the monetary effect. D) sterilization.
Assume a firm produces 500 units of a good by using two inputs, capital and labor, whose per unit prices are $10 and $4
Assume also that the marginal physical product of the last unit of capital is 30 and the marginal physical product of the last unit of labor is 10. Is this firm minimizing its costs of producing 500 units of output? A) No, because the marginal products of the two inputs are not equal. B) No, because the MRTS and the price ratio for the two inputs are not equal. C) No, because the prices of the two inputs are not equal. D) The answer cannot be determined without more information.
To remedy the problem faced by low-skilled job seekers, more attention must be paid to the level of demand, not the structure of demand
Indicate whether the statement is true or false
The Southern Colonies' exports went primarily to
a. the United Kingdom. b. continental Europe. c. the West Indies. d. Africa.