Refer to the above figure. A price ceiling of $20 results in
A. a shortage of 200 units.
B. a surplus of 100 units.
C. a shortage of 100 units.
D. a surplus of 200 units.
Answer: C
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In the above table, what is average product when 4 workers are employed?
A) 12 B) 10 C) 11.5 D) 9.5
In an? economy, the currency drain is 5 percent of deposits and the desired reserve ratio is 2 percent of deposits. If the central bank buys? $100,000 of securities on the open? market, calculate the money multiplier.
Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation. B. low economic growth and high inflation. C. high economic growth and low inflation. D. low economic growth and low inflation.
In the presence of a negative externality, a specific tax can achieve the social optimum because
A) output is reduced to zero as a result. B) it internalizes the external cost. C) it directly charges the producer for polluting. D) the price of the good rises by the full amount of the tax.