Suppose the Chinese government regulates the price of food and forbids firms from setting a higher price. In this case the government is setting a
A) price floor.
B) price ceiling.
C) quota.
D) tax.
B
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Suppose a tax is imposed on sellers. The more inelastic the demand for the taxed item, the
A) greater the share of the tax paid by sellers. B) smaller the deadweight loss from the tax. C) larger the decrease in consumption because of the tax. D) All of the above answers are correct.
Since it does not have to be converted into anything else to make purchases, ________ is the most liquid asset
A) money B) stock C) artwork D) gold
Which of the following is NOT an economic function of government?
A) providing a legal system B) ensuring economic stability C) providing government-inhibited goods D) promoting competition
If the Gini coefficient of Country A is 0.3 and the Gini coefficient of Country B is 0.45, we can conclude that
A. income is more evenly distributed among households in Country A than in Country B. B. wealth is more evenly distributed among households in Country A than in Country B. C. income is more evenly distributed among households in Country B than in Country A. D. wealth is more evenly distributed among households in Country B than in Country A.