A binding rent-control price ceiling results in all of the following EXCEPT:

A. inefficiently low quantity of the good exchanged.
B. inefficient allocation of the good to consumers.
C. wasted resources of consumers caused by time spent searching for the good.
D. inefficiently high quality of the good being sold.


Answer: D. inefficiently high quality of the good being sold.

Economics

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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 

A. D; C B. B; C C. B; A D. D; B

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A firm that has declining marginal output would be experiencing __________.

Fill in the blank(s) with the appropriate word(s).

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Using "chain-weighted" prices to calculate real GDP remedies the distortions causes by changes in relative prices over time

Indicate whether the statement is true or false

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Currency speculators are traders who seek to profit from a(n):

a. shift in global demand and supply patterns. b. increase in the price of oil. c. sudden shift in interest rates. d. exchange rate change by selling the currency expected to appreciate and buying the currency expected to depreciate. e. exchange rate change by selling the currency expected to depreciate and buying the currency expected to appreciate.

Economics