A price ceiling:
A. is the lowest price that the law will allow to be charged in the market.
B. is the highest price that the law will allow to be charged in the market.
C. is the price that must be charged in the market.
D. would be imposed if the government believes the market equilibrium price is too low.
Answer: B
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Direct majority-rule voting is a form of coercion in the sense that
a. all citizens must vote b. all registered voters must vote c. the median voter's preferences determine the outcome for everyone d. the majority gets exactly what they want, but the minority does not. e. individuals with higher incomes get more votes
According to the text, Japan lost much of its capital stock during World War II. It subsequently found that its
a. production possibilities curve had shifted to the left because it was unable to regain,even until today, its prewar output levels, having lost so much of its capital resources(Hiroshima and Nagasaki still haven't recovered from the 1945 atomic bomb attacks) b. production possibilities curve, having shifted to the left, quickly recovered with the use of the most up-to-date technology c. economy's productivity suffered irreversibly because the enormous loss of life created a loss of skilled, scientific, and technological knowledge d. research efforts were hampered because victor countries refused to share scientific knowledge with it in retaliation for the war e. production possibilities curve remained unchanged for two decades after the warbecause international trade was reduced
Externalities are
a. side effects passed on to a party other than the buyers and sellers in the market. b. side effects of government intervention in markets. c. external forces that cause the price of a good to be higher than it otherwise would be. d. external forces that help establish equilibrium price.
Suppose that a market for a product is in equilibrium at a price of $5 per unit. At any price above $5 per unit:
A. there will be an excess demand for the product. B. there will be an excess supply of the product. C. the quantity supplied of the product will be less than the quantity demanded of that product. D. there will be a shortage of that product.