If the current market price of good Z is below the equilibrium price of good Z
A) it must be because the government has imposed a price ceiling in the market for good Z.
B) there is a shortage of good Z.
C) there is a surplus of good Z.
D) demand must necessarily decrease to restore equilibrium.
E) a and b
B
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The primary purpose of ________ is to encourage the expenditure of funds on research and development to create new products
A) patents and copyrights B) nationalizing oil companies C) government-run health care D) centrally planned economies
What percent of currency transactions involve a trade in the spot market?
a. 30% b. 40% c. 60% d. 90%
Price controls involve the use of the power of the state to establish prices different from the ______ prices that would otherwise prevail.
a. demand b. supply c. indeterminate d. equilibrium
If the average total cost is increasing over a given output range, the average total cost must be smaller than the marginal cost.
Answer the following statement true (T) or false (F)