A price ceiling means that:
A. there is currently a surplus of the relevant product.
B. government is imposing a legal price that is typically below the equilibrium price.
C. government wants to stop a deflationary spiral.
D. government is imposing a legal price that is typically above the equilibrium price.
Answer: B
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A firm's total cost (TC) equals the sum of its fixed cost plus its
A) marginal cost. B) variable cost. C) variable cost plus its marginal cost. D) sunk cost plus its variable cost plus its marginal cost.
The Federal Reserve wants to reduce the nation's money supply. This could be accomplished by doing all of the following EXCEPT
A. decreasing the discount rate. B. increasing the reserve requirement. C. selling securities on the open market. D. making banks hold a reserve for all types of deposits.
Your bike is worth $100 and if you park it outside at school there is a 25% chance that it will be stolen. Your utility function for money is 
. Assume throughout that the bike value and money are interchangeable since you could sell the bike instantly at its value if necessary. What is the maximum you will pay for the bike check-in now?
What will be an ideal response?
Utility payments and tuition fees are examples of ______.
a. property tax b. user charges c. federal grants d. sales tax