If the government imposes a maximum price that is above the equilibrium price,
A. demand will be greater than supply.
B. the available supply will have to be rationed with a nonprice rationing mechanism.
C. this maximum price will have no economic impact.
D. quantity demanded will be less than quantity supplied.
Answer: C
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The equilibrium increase in marginal costs for firms resulting from the imposition of a price floor will be larger the more inelastic the price elasticity of demand is.
Answer the following statement true (T) or false (F)
Opportunity cost is the best alternative sacrificed for a chosen alternative
a. True b. False Indicate whether the statement is true or false
Which of the following would be included in a year's GDP?
a. Susan cleans the fuel injectors on her car. b. A private individual purchases 100 shares of IBM stock. c. A timber company purchases land in Oregon. d. A man buys an antique desk from his neighbor. e. A college professor purchases a new computer.
The following is budget information for a hypothetical economy. All data are in billions of dollars.
Refer to the above table. In which year is there a balanced budget?
A. Year 1
B. Year 2
C. Year 3
D. Year 4