An effective price ceiling tends to
A) increase quantity supplied.
B) decrease quantity demanded.
C) leave quantity supplied and demanded unchanged.
D) do none of the above.
D
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Refer to the scenario above. Which of the following will happen if she sells it for $200, and the total cost incurred by her in making the dress was $150?
A) GDP will increase by $50. B) GDP will increase by $180. C) Trade surplus will increase by $200. D) GDP will remain unchanged. Sarah takes care of her son instead of sending him to a day care which charges $12,000 annually.
GDP accounting ignores
A) all non-market forms of production. B) illegal (black market) production. C) economic value added. D) all of the above.
Refer to Figure 4-1. If the market price is $2.50, what is the consumer surplus on the first ice cream cone?
A) $0.50 B) $1.00 C) $3.50 D) $9.00
When the economy is using all of its factors of production, the aggregate supply curve is vertical
Indicate whether the statement is true or false