If a price floor is not binding, then
a. the equilibrium price is above the price floor.
b. the equilibrium price is below the price floor.
c. there will be a surplus in the market
d. Both (a) and (c) are correct.
a
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Which of the following actions did Congress NOT take in the 1930s, in an effort to prevent future financial crises like the stock market crash of 1929?
A. Glass-Steagall Banking Act B. Formation of the SEC C. Formation of the FDIC D. Federal Reserve Act
Both positive nor negative supply shocks a. Change AD
b. Permanently change real output in an economy. c. Change the price level in the long run. d. None of the above are true
Which of the following situations will arise in the domestic market following the imposition of an import ban?
A. imports increase, domestic production increases, prices increase B. imports increase, domestic production decreases, prices decrease C. imports decrease, domestic production increases, prices increase D. imports decrease, domestic production increases, prices decrease
The "$99 iPads" The Economy Tomorrow analysis indicates that the success of the iPad
A. Caused exit of firms from the tablet market. B. Attracted new firms with identical products. C. Created new entrants into the tablet market. D. Caused the quality of products to fall.