Suppose the market clearing price is $15 and the price ceiling is $16. The price that prevails in the market will be
A. more than $16.
B. $15.
C. $16.
D. less than $15.
Answer: B
You might also like to view...
In the simplest Keynesian model of the determination of income, interest rates are assumed
A) to be exogenous and to influence desired spending. B) to be endogenous and not to influence desired spending. C) to be endogenous and to influence desired spending. D) to be exogenous and not to influence spending.
An increase in the capital stock causes labor productivity to
a. decrease and the standard of living to increase b. increase and the standard of living to decrease c. decrease and the standard of living to decrease d. increase while the standard of living remains constant e. increase and the standard of living to increase
Assuming that households do not change their cash holdings and banks loan out all of their excess reserves, if the required reserve ratio (RRR) is 10 percent and the Fed purchases $2,000 worth of bonds from banks, how much money will be eventually created?
a. $1,800 b. $2,000 c. $9,000 d. $18,000 e. $20,000
A perfectly competitive firm would be willing to remain in the industry in the long run at zero economic profit because
a. its total revenues would be positive. b. accounting profit would be negative. c. revenue is equal to all costs, including the opportunity cost of capital and labor. d. its fixed costs would prevent it from leaving the industry.