A non-binding price ceiling i. causes a surplus. ii. causes a shortage. iii. is set at a price above the equilibrium price. iv. is set at a price below the equilibrium price
a. (i) only
b. (iii) only
c. (i) and (iii) only
d. (ii) and (iv) only
b
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For the purpose of statistically reporting the unemployment rate, "discouraged workers" are
A) not counted. B) counted. C) trained to do different work. D) offered other jobs.
If nominal GDP is $7 trillion, and the money supply is $2 trillion, then what is the velocity of money?
a. 14. b. 7. c. 3.5. d. 2.
The U.S. Treasury yield curve:
A. always has a negative slope. B. always has a positive slope. C. assumes maturities are constant, and reflects the difference in risk. D. shows the relationship among bonds with the same risk characteristics but different maturities.
Suppose that some investors have decided that economic and financial uncertainty have made the prospect of investing in domestic stock markets more risky than investing in foreign stock markets, and therefore choose to invest in foreign markets. By using
all available information as they act to achieve their goals, these investors are exemplifying the economic idea that A) people are rational. B) people respond to economic incentives. C) optimal decisions are made at the margin. D) equity is more important than efficiency.