Effective price ceilings and price floors:
A. make the rationing function of free markets more efficient.
B. cause surpluses and shortages, respectively.
C. interfere with the rationing function of prices.
D. shift demand and supply curves and therefore have no effect on the rationing function of prices.
Answer: C
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In some developing countries, labor productivity has remained stagnant or fallen because
a. the capital stock has grown at about the same rate or more slowly than the population b. the capital stock has grown faster than the population c. the population has decreased d. foreign labor has been utilized e. wages have dropped
Hank's Honey is a bee farm out in the country. Kid Kare Nursery School is next door. Fleurette's fruit orchard is located on the other side of the school. Hank's bees, searching for nectar, buzz by the nursery school to feed in Fleurette's orchard and in doing so, pollinate the fruit. The school children, however, fear the bees. Who benefits in this story?
a. Hank and Fleurette b. Kid Kare c. Hank only d. Fleurette only e. no one benefits, but Kid Kare loses