The surplus created by a price floor will likely be
A) smaller if the good is a necessity.
B) larger if the good is addictive.
C) smaller if the good is a luxury.
D) unaffected by the time that has elapsed since the price ceiling is implemented.
E) None of the above answers is correct.
A
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Which of the following is a topic studied in macroeconomics?
A) how the wheat industry determines how much wheat to grow B) the effect on economic growth if the government raises taxes C) the impact of labor unions on wages D) the pricing decisions in the computer hardware industry E) the impact of higher prices for gasoline on the number of SUVs people buy
Which of the following statements is incorrect? a. Advertising can lower the costs to consumers of acquiring information
b. Advertising tends to increase competition in imperfectly competitive industries. c. Even though advertising increases total production costs, it may indeed provide a useful service to consumers. d. Advertising is only useful as a way to manipulate consumer tastes.