The removal of a price ceiling in a market results in:
a. an increase in the market price.
b. a shortage in the market.
c. over-production of the commodity and a surplus.
d. a fall in the market price.
e. abnormal profits for producers.
a
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Any output combination outside a production possibilities frontier is associated with unused or
underutilized resources. Indicate whether the statement is true or false
The Coase Theorem asserts that government intervention is a prerequisite for addressing externality problems
Indicate whether the statement is true or false
The goal of the consumer in a market economy is to use his or her limited income to buy
A. The goods and services that maximize profits for businesses. B. Those goods and services with the lowest prices. C. The set of goods and services that maximizes the consumer's total utility. D. The greatest number of goods and services possible.
Based on the Index of Economic Freedom provided by the Heritage Foundation, which of the following nations is considered least free?
A. Japan. B. Argentina. C. New Zealand. D. Colombia.