Effective price ceilings and price floors:
A. make the rationing function of free markets more efficient.
B. cause surpluses and shortages, respectively.
C. interfere with the rationing function of prices.
D. shift demand and supply curves and therefore have no effect on the rationing function of prices.
Answer: C
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All of the following are nontransaction deposits EXCEPT
A) savings accounts. B) small-denomination time deposits. C) checkable deposits. D) certificates of deposit.
Refer to Figure 18.2. The sale of bonds by the Fed in the open market will result in
A. An increase in the money supply and a move from AS1 to AS2. B. A decrease in the money supply and a move from AD2 to AD1. C. An increase in the money supply and a move from AD1 to AD2. D. A decrease in the money supply and a move from AS2 to AS1.
When economic profits are zero in equilibrium, The firms revenue must be sufficient to cover all opportunity costs if the firm is to remain in business in the long run
Answer the following statement(s) true (T) or false (F)
Refer to the information provided in Table 3.2 below to answer the question(s) that follow.Table 3.2Price per CheeseburgerQuantity Demanded (Cheeseburgers per Month)Quantity Supplied (Cheeseburgers per Month)$51,500 500 61,200 700 7 900 900 8 6001,100 9 3001,300Refer to Table 3.2. In this market there will be an excess supply of 1,000 cheeseburgers at a price of
A. $5. B. $6. C. $7. D. $9.