A law establishing a minimum legal price for a good or service (the minimum wage for example) is known as
a. an equilibrium price.
b. a price floor.
c. a price ceiling.
d. a price wall.
B
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If the market price rises above $6.30, the firm will earn:
a. positive economic profits in the short run. b. zero economic profits in the short run. c. negative economic profits and shut down. d. negative economic profits in the short run but remain in business.
Consuming goods until the ratio of marginal utilities of the goods is equal to the ratio of their prices is consistent with maximizing total utility
a. True b. False
Flora's Flowers operates in a perfectly competitive market. At the point where marginal cost equals marginal revenue, ATC = $10, AVC = $5, and the price per unit is $15 . In this situation,
a. Flora earns positive profits in the short run b. Flora will shut down in the short run c. Flora's supply curve will shift to the left d. Flora's supply curve will shift to the right e. the market price will rise in the long run
Which of the following was not a major area addressed by the Dodd-Frank Bill (i.e., Wall Street Reform and Consumer Protection Act of 2010)
a. Reducing systemic threats to the U.S. financial system. b. Slow economic growth and the need for Congress to increase spending. c. Solving the "too big to fail" problem in the U.S. financial system. d. Improving credit rating agency performance and accountability.