Which of the following statements best describes a price ceiling?
(a) The maximum price that consumers will pay for a product/service.
(b) A price ceiling will cause an excess demand for a good/service.
(c) A price lower than the market equilibrium price.
(d) All of the above.
Answer: (d) All of the above.
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Answer the following statement(s) true (T) or false (F)
1. When suppliers are not satisfied, they lower their prices to attract more demanders. 2. If the demand for a good is high, then there will be a shortage of that good. 3. The equilibrium price of a good will rise in response to either a rise in demand or a fall in supply. 4. When a sales tax of 50¢ per carton is imposed on cigarettes, the equilibrium price drops by precisely 50¢ per carton. 5. Suppliers of a commodity are better off whenever the legal incidence of a tax is shifted away from the suppliers to the demanders.
What was not a reason for the decline of the Deep South between the Civil War and 1890?
a. Elimination of economies of scale in the production process. b. An extended period of droughts and bad weather. c. Significant withdrawal of labor from the fields, especially by women and children. d. Increased competition from cotton suppliers in other nations.
Which of the following counts as part of the supply of loanable funds?
a. bank deposits and purchases of bonds b. bank deposits but not purchases of bonds c. purchases of bonds but not bank deposits d. neither purchases of bonds nor bank deposits
Typically, a bank's largest asset is its
A) reserves. B) holdings of securities. C) deposits of its customers. D) loans.