Refer to the information provided in Figure 4.3 below to answer the question(s) that follow.
Figure 4.3Refer to Figure 4.3. At an effective price ceiling for pencils,
A. quantity demanded is greater than quantity supplied.
B. quantity demanded is equal to quantity supplied.
C. quantity demanded is less than quantity supplied.
D. price is above equilibrium.
Answer: A
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In the early 1950s the two new factors that stimulated the United States' economy were ___________ and ____________.
Fill in the blank(s) with the appropriate word(s).
The Commerce Bank of Beverly Hills has total deposits of $1,000,000 and total reserves of $220,000. The desired reserve ratio is 10 percent. The bank's excess reserves are
A) $22,000. B) $120,000. C) $100,000. D) $80,000. E) $1,000,000.
What would happen in an economy if total planned production exceeded total planned real expenditures?
A) Inventories would be depleted, and firms would tend to lower prices. B) Inventories would accumulate, and firms would tend to lower prices. C) Inventories would be depleted, and firms would tend to raise prices. D) Inventories would accumulate, and firms would tend to raise prices.
In perfect competition, an increase in fixed costs will eventually cause all except
A. reduction in industry output. B. reduction in a firm’s output. C. reduction in the number of firms. D. decrease in industry supply.