If the support price is set below the equilibrium market price,
A. A shortage will result.
B. There will be upward pressure on prices.
C. The equilibrium price will result.
D. A surplus will result.
Answer: C
You might also like to view...
A bond that is currently selling at $1,000 offers to pay $50 annually. What is the percentage rate of return on the bond?
A. 10% B. 50% C. 5% D. 20%
When banks operate to match savers and borrowers to increase the efficiency of financial markets, their role is known as
A) financial intermediary. B) lender of the last resort. C) financial market regulator. D) central bank.
When firms incur unplanned inventories, they typically
a. build new plants. b. call for more government spending. c. hire more workers and increase production. d. lay off workers and reduce production.
David Ellwood suggests the explanation for low employment rates among poor families is Flawed Character
Indicate whether the statement is true or false