Price controls on resources generally lead to surpluses.
Answer the following statement true (T) or false (F)
False
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In what way is the result of an excise tax imposed on either demanders or suppliers similar to the result of a price floor?
a. The amount that consumers pay for the good will be less than they previously paid b. The amount of the good that will be traded in the market will be greater than previously traded c. both price floors and excise taxes create excess demand d. The amount that consumers pay for the good will be greater than they previously paid e. Both price floors and excise taxes create excess supply
Which of the following formulas is used to determine either total economic profit or total economic loss?
a. P* + ATC ? q* b. P* ? ATC ? q* c. q* ? ATC ? P* d. q* + ATC ? P*
The equilibrium level of real GDP is $1,000, the target full-employment level of real GDP is $1,500, and the marginal propensity to consume is 0.75. The target can be reached if government spending is:
A. increased by $100 billion. B. increased by $125 billion. C. increased by $500 billion. D. held constant.
Dead capital refers to
A. a capital resource that lacks clear title ownership. B. a capital resource jointly owned by more than one person. C. a capital resource whose owner is deceased. D. a capital resource that has no more useful life.