If the equilibrium price of natural gas is $4 per thousand cubic feet and a price ceiling is imposed at $3 per thousand cubic feet, the result will be:
a. a surplus of natural gas.
b. a shortage of natural gas.
c. an accumulation of inventories of unsold gas.
d. None of these.
b
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To determine GDP from the production function, we need to know
A) the quantity of labor employed. B) the quantity of labor available for work. C) the unemployment rate. D) the quantity of labor supplied by firms. E) the real wage rate.
If at the profit maximizing level of output, the AR curve lies below the ATC curve in the short run, the firm is earning positive economic profit
a. True b. False Indicate whether the statement is true or false
Goods that cost one dollar in the U.S. cost one euro in France, the real exchange rate would be computed as how many French goods per U.S. goods?
a. one b. the price of the U.S. goods c. the number of euros that can be bought with one U.S. dollar d. None of the above is correct.
During the Great Depression, many industrial countries tried protecting domestic jobs by raising tariffs. Economic theory would suggest that the result would be
A) success for only the countries that raised tariffs first. B) success for firms that had a comparative advantage in manufactured goods rather than agricultural goods. C) reduced exports and volume of trade for everyone. D) increased incomes in the countries that pursued this policy.