When a binding price floor is imposed on a market to benefit sellers,
a. every seller in the market benefits.
b. all buyers and sellers benefit.
c. every seller who wants to sell the good will be able to do so, but only if he appeals to the personal biases of the buyers.
d. some sellers will not be able to sell any amount of the good.
d
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Economic theory can predict or explain behavior
A) in the private but not in the public or government sector of society. B) most successfully in areas where behavior is largely guided by foresight and planning. C) only when behavior aims at maximizing net monetary revenue. D) when people behave selfishly rather than in the public interest.
The Fed's purchase of government securities could
A) increase loans made by banks. B) be an effective anti-inflationary policy. C) decrease the price level and have no effect on real GDP. D) decrease bank reserves.
Briefly explain why gross domestic product is not a welfare measure
What will be an ideal response?
Which of the following sayings best represents the concept of opportunity costs?
a. "A glass can be half empty or half full." b. "When in Rome, do as the Romans do." c. "There is no such thing as a free lunch." d. "No taxation without representation." e. "What's up?"