A maximum price, set by the government, that sellers may charge for a good is known as
A. a price floor.
B. a price ceiling.
C. a price rationing mechanism.
D. a subsidy.
Answer: B
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The Bigdrill company drills for oil, which it sells for $200 million to the Bigoil company to be made into gas. The Bigoil company's gas is sold for a total of $600 million
What is the total contribution to the country's GDP from companies Bigdrill and Bigoil? A) $200 million B) $400 million C) $600 million D) $800 million
The efficient market hypothesis would lead to the conclusion that
A. people who win big in the stock market are more lucky than smart. B. only the highly skilled investors should put their money into the stock market. C. people who win big in the stock market are usually very good investors. D. markets are not good anticipators of events that affect stock value.
Many economists have argued that labor market regulations in the European Union have stifled efficiency and held down potential GDP. If this argument is correct, the removal of these regulations should:
A. shift the aggregate demand curve out to the right. B. not affect the aggregate supply or aggregate demand curves. C. shift the long-run aggregate supply curve out to the right. D. shift the short-run aggregate supply curve in to the left.
The largest single share of all income earned by Americans consists of:
A. wages and salaries. B. interest. C. rents. D. corporate profits.