A price ceiling is always a binding price control, whereas a price floor may be either binding or not binding
a. True
b. False
Indicate whether the statement is true or false
False
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Citizens and investors in Argentina interpreted the government's fiscal stimulus response to the country's financial crisis as:
A. a bad sign and drastically increased their spending and investing as a result. B. a bad sign and drastically reduced their spending and investing as a result. C. a good sign and drastically increased their spending and investing as a result. D. a good sign and drastically reduced their spending and investing as a result.
The marginal productivity theory of income distribution has been criticized because:
A. the resulting distribution of income is likely to be too equal to maintain production incentives. B. income from inherited property is inconsistent with the theory. C. purely competitive conditions characterize most resource markets. D. it fails to recognize that resource demand is derived from product demand.