A price ceiling set below the equilibrium price creates a shortage
a. True
b. False
Indicate whether the statement is true or false
True
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Why is there unemployment even when the economy is at "full employment"?
What will be an ideal response?
According to the quantity theory of money, an increase in the money supply leads to:
A. an increase in prices, as there are more dollar bills spent on the same number of goods and services. B. an increase in prices, as there are the same dollar bills spent on a greater number of goods and services. C. a decrease in prices, as there are more dollar bills spent on the same number of goods and services. D. a decrease in price, as there are the same dollar bills spent on a greater number of goods and services.
Rent controls create distortions in the housing market by:
A. increasing the supply of housing in the long run. B. raising property values. C. encouraging landlords to overspend for maintenance. D. discouraging new housing construction.
The firm's shutdown point occurs at an output of
A. 150.
B. 200.
C. 225.
D. 250.