If a legal ceiling price is set above the equilibrium price:
A. a shortage of the product will occur.
B. a surplus of the product will occur.
C. a black market will evolve.
D. neither the equilibrium price nor the equilibrium quantity will be affected.
Answer: D
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The fees physicians charge patients are most closely related to the physicians' cost of
A) acquiring a medical degree. B) earning a target income. C) maintaining their practice. D) spending time with patients.
The current account balance is
A) the supply of a country's exports less the country's own demand for imports. B) the demand for a country's exports plus the country's own demand for imports. C) the country's own demand for imports less the demand for a country's exports. D) the demand for a country's exports less the country's own demand for imports. E) the country's federal reserves minus the national debt.
Icy Treats is a large Italian ice dessert chain with franchises located throughout the United States. Icy Treats' advertising ________ promote the benefits of eating Icy Treats' icees and ________ highlight an individual Icy Treats location in Asheville, North Carolina.
A) will; will not B) will not; will not C) will not; will D) will; will
Which of the following is true of marginal revenue?
a. Marginal revenue equals total revenue divided by quantity. b. Marginal revenue is the slope of the supply curve of a firm. c. Marginal revenue is the slope of the total cost curve when profit is maximized. d. Marginal revenue equals the change in total revenue due to an additional unit of output. e. Marginal revenue equals the income earned by selling stocks on the margin.