The harmful effect of a price floor to ________ is ________.
A. consumers; the floor creates a shortage of the product
B. producers; the selling price of the product is below the equilibrium price
C. consumers; the selling price of the product is below the equilibrium price
D. producers; the floor creates a surplus of the product
Answer: D
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When firms price their products by adding a percentage markup to their average costs of production, this is called
A) cost-plus pricing. B) rounding up. C) break-even pricing. D) average cost pricing.
If the short run aggregate supply curve is flat, the Phillips curve will be
a. flat b. steep c. horizontal d. upward sloping
When you take $100 from your saving account and deposit it in your checking account, M2 decreases.
Answer the following statement true (T) or false (F)
The colluding oligopoly will face market demand and produce up until the point at which
A. price and marginal cost are equal and price will be set equal to marginal cost. B. marginal revenue and marginal cost are equal and price will be set above marginal cost. C. marginal revenue and marginal cost are equal and price will be set below marginal cost. D. price and marginal revenue are equal and price will be set below marginal cost.