If a price ceiling is not binding, then it will have no effect on the market
a. True
b. False
Indicate whether the statement is true or false
True
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If the U.S. government wants to increase the price of the dollar relative to the euro, it could buy euros with dollars in the foreign exchange market
Indicate whether the statement is true or false
According to Keynes, the classical model could not explain
A) a recession or depression. B) periods of rising unemployment. C) a long-term economic decline. D) periods of rising interest rates.
If a project has an initial investment of $20,000 and consecutive yearly cash inflows of $5,000, $8000, $10,000 and $7,000, respectively, what is its payback period?
A. 2 years B. 2.5 years C. 2.7 years D. 3 years
A price floor is a reasonable price control mechanism to impose in cases where the government believes the market's equilibrium price
a. creates an excess supply that will force price downward b. is too high c. creates an excess demand that will force price upward d. is too low e. is higher than the market price