The harmful effect of a price floor to ________ is ________.
A. consumers; the selling price of the product is below the equilibrium price
B. consumers; the floor creates a shortage of the product
C. producers; the floor creates a surplus of the product
D. producers; the selling price of the product is below the equilibrium price
Answer: C
You might also like to view...
As the interest rate increases, the present value of a future payment
A) increases. B) decreases. C) does not change. D) approaches infinity.
Interest-rate ceilings on deposits: a. meant banks were guaranteed "cheap money" from depositors
b. were imposed because without them, as was the case in the 1970s, banks couldn't be profitable. c. led to banks losing deposits whenever market rates went above the ceiling rates. d. are only effective when market rates are below the ceiling rates. e. were developed by money market mutual funds as a marketing device.
Government ownership of monopoly industries is termed
a. economic regulation b. antitrust c. nationalization d. creative destruction e. rule of reason
Which of the following is a set of rules outlining when tariffs are appropriate and when they are not?
A. USSR B. GATT C. WTO D. NAFTA