A minimum wage policy is an example of a ________
A) price ceiling
B) price floor
C) positive externality
D) negative externality
B
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The amount of checkable deposits that banks are required by regulation to hold are the
A) excess reserves. B) required reserves. C) vault cash. D) total reserves.
Refer to the above figure. The market equilibrium quantity is Q1. Point Q2 represents the optimal amount of production. This indicates that there is
A) a public good which should be produced. B) regressive taxation of the product. C) a positive externality. D) a negative externality.
The construction of a price index is complicated by several factors, including changes in the quality of goods and services over time, the introduction of new products, and the disappearance of old, outmoded products
a. True b. False Indicate whether the statement is true or false
Refer to the information provided in Figure 5.6 below to answer the question that follows.
Figure 5.6Refer to Figure 5.6. The market is initially in equilibrium at the intersection of the demand curve and supply curve S2. If supply shifts from S2 to S1, which of the following statements is true?
A. Price will still serve as a rationing device causing quantity demanded to rise from 10 to 12 pizzas. B. There is no need for price to serve as a rationing device in this case because the new equilibrium quantity is less than the original equilibrium quantity. C. The market cannot move to a new equilibrium unless demand shifts at the same time that supply shifts. D. Price will still serve as a rationing device causing quantity supplied to exceed 12 pizzas.