A Price Ceiling That Is Set Below the Equilibrium Price

question 5

Multiple Choice

A price ceiling that is set below the equilibrium price will cause:

• A)producer surplus to fall.
• B)total economic surplus to rise.
• C)quantity supplied to exceed quantity demanded.
• D)an increase in demand.

Understand the principles of vicarious liability and the circumstances under which an employer is liable for the actions of employees and contractors.

Distinguish between just cause for termination and situations where dismissal is due to operational requirements.

Know the obligations of employees in terms of gathering information and soliciting customers before and after termination.

Recognize the rights and duties of unionized employees, including picket line protocols during strikes.

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Definitions:

Pre-Tax Income

The amount of income earned by a business or individual before any taxes have been deducted.

Publicly Traded

Refers to a company whose shares are available for purchase by the public on stock exchanges.

Tax Burden

The total amount of taxes paid by an individual or business, expressed as a percentage of income.

Piece Rate Plan

A compensation model where workers are paid a fixed sum for each unit of production completed, rather than an hourly wage.