The government of a country Amenia imposes a ceiling on the price of bread. Which of the following is most likely to be true?
a. It implies that the price of bread prevalent in Amenia is higher than what the equilibrium price would have been.
b. Imposing this price ceiling is likely to raise economic welfare in Amenia as the government tries to ensure that most people can at least afford bread.
c. It will cause an excess demand for bread in the market.
d. The market is likely to remain in equilibrium even after the price ceiling is imposed.
c
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Comparing the United States economy in the 1920s with the economy in the 1990s, both decades
A. had slow economic growth. B. had a lack of any government regulation of the stock market. C. suffered from economic depressions. D. had soaring stock
In poorer countries, free trade ________ the demand for labor in these countries and ________ the wages paid in these countries
A) decreases; lowers B) decreases; raises C) increases; lowers D) increases; raises
Special interest groups are very unlikely to push for policies that increase the size of their slice of the economic pie if it means that the overall size of the economic pie will shrink.
Answer the following statement true (T) or false (F)
For a good to be scarce, it must be something that
a. has economic value. b. people find useful. c. is available only in limited quantities. d. All of these.