A binding price floor creates
a. deadweight loss.
b. consumer surplus.
c. producer surplus.
d. deadweight gain.
a. deadweight loss.
You might also like to view...
Write a brief history of the federal income tax in the United States. Your description should reference dates and constitutional/political issues, if any
What will be an ideal response?
Under the Bretton Woods system of fixed exchange rates,
a. devaluations were frequent and small. b. devaluations were usually unforeseen. c. the IMF ensured that exchange rates were never changed. d. speculators could profit from an attack on a weak currency.
Which of the following is NOT true of a demand curve?
A. It reflects sellers' reservations prices. B. It relates the price of an item to the quantity demanded of that item. C. It has negative slope. D. It shows the amount consumers want to buy at various prices.
Automatic stabilizers
A. are never altered. B. must be determined by the Congress in each budget. C. work counter-cyclically to moderate the business cycle. D. often make any downturn in the economy worse.