Binding price ceilings benefit consumers because they allow consumers to buy all the goods they demand at a lower price
a. True
b. False
Indicate whether the statement is true or false
False
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
When household incomes are ranked from lowest to highest, the middle income is known as the:
A) median income. B) mean income. C) means-tested income. D) official poverty level. E) transfer income.
Suppose you have just opened a store to sell espresso machines. Both you and a competing store buy this machine from a manufacturer for $130 each
Your competitor who has a store of the same size as yours is currently selling about 10 machines a month at a price of $200 per machine. You expect to sell about 6 machines a month at a price of $220 per machine. If you lower your price, you expect to make a loss. Which of the following could explain why your competitor is able to profitably sell the machine at a lower price although the cost of purchasing the machine is the same for the both of you? A) The competing store probably has a lower marginal cost of production. B) The competing store's goal is to maximize revenue and not profit. C) The competing store probably has a lower average cost because average fixed cost falls as output increases. D) The competing store probably has a lower average variable cost of production.
Choose the letter below that best represents the type of shift that would occur in the following situation in the United States: During the late 1990s, productivity in many U.S. industries increased because of technological advances. (See Figure 8.6.)
A. A. B. B. C. C. D. D.