alleryMinimum wage laws are an example of a
- Price ceiling
- Price floor
- Pigovian tax
- Subsidy scheme
Show answer and solution
Correct answer: B. Price floor
A minimum wage sets a lowest permitted price in the labour market, which is a price floor.
CA Foundation Basic Problems of an Economy and Role of Price Mechanism — practice questions — page 2
Explore 59 free Basic Problems of an Economy and Role of Price Mechanism questions in CA Foundation Business Economics. Open each question or exercise to read its content, reference answers and available explanation.
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Minimum wage laws are an example of aRead the answer and worked solution →Taxes meant to address market externalities are calledRead the answer and worked solution →Which pair of features is typical of a mixed economy?Read the answer and worked solution →India is typically described as which kind of economy?Read the answer and worked solution →India's mixed economy has a growing private sector alongsideRead the answer and worked solution →Capitalism generally features private ownership of capital andRead the answer and worked solution →Which resource allocation system is called a 'hands on' system?Read the answer and worked solution →Goods swapped directly for other goods without money mark aRead the answer and worked solution →A hypothetical economy where resources are not scarce is calledRead the answer and worked solution →A production possibility frontier shows theRead the answer and worked solution →A point beneath the PPF indicatesRead the answer and worked solution →Output combinations lying outside the PPF areRead the answer and worked solution →An outward shift of the PPF can result fromRead the answer and worked solution →A disaster destroying capital would move the PPFRead the answer and worked solution →Most economic contractions reflect an economy operatingRead the answer and worked solution →The slope of the PPF at a point is called theRead the answer and worked solution →A typical PPF is concave to the origin, reflectingRead the answer and worked solution →A straight-line PPF impliesRead the answer and worked solution →Productive efficiency on the PPF does not guaranteeRead the answer and worked solution →The position of the PPF depends on technology andRead the answer and worked solution →Opportunity cost of a choice is the value of theRead the answer and worked solution →Out-of-pocket costs of a firm, easily identified, are calledRead the answer and worked solution →The opportunity cost of using firm-owned resources is itsRead the answer and worked solution →Accounting profit differs from economic profit because accounting ignoresRead the answer and worked solution →A country has comparative advantage if it produces a good at a lowerRead the answer and worked solution →Making 100 tonnes of tea costs Country A 20 tonnes of wool. The cost per tonne of tea isRead the answer and worked solution →The least-cost method of production relates to the problem ofRead the answer and worked solution →Absolute scarcity is the condition where human requirements areRead the answer and worked solution →Malthus argued that population grows exponentially while food supply growsRead the answer and worked solution →
Worked practice questions
Taxes meant to address market externalities are called
- Pigovian taxes
- Poll taxes
- Excise duties
- Wealth taxes
Show answer and solution
Correct answer: A. Pigovian taxes
Pigovian taxes are used to discourage behaviour and address externalities generated by certain transactions.
Which pair of features is typical of a mixed economy?
- Only private firms
- Public and private firms
- Barter and gift trade
- Only state firms
Show answer and solution
Correct answer: B. Public and private firms
A mixed economy combines public and private ownership, markets with planning, or free markets with state interventionism.
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