A rent ceiling set above the equilibrium rent
A) decreases the quantity demanded but not the quantity supplied.
B) decreases the quantity supplied but not the quantity demanded.
C) decreases both the quantity demanded and the quantity supplied.
D) has no effect on the market outcome.
D
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
Possession of information by one party in a financial transaction but not by the other party is
A) symmetric information. B) asymmetric information. C) informational hazard. D) financial intermediation.
The term price taker is used to describe a situation in which consumers have no influence over the market price for a good or service and must take whatever price is set by the economically powerful firms
a. True b. False
Markets are primarily responsible for the rapid rise in productivity during the 20th century.
Answer the following statement true (T) or false (F)