When a price ceiling which had been set below equilibrium price is removed, what happens next?
A. quantity supplied rises
B. quantity demanded rises
C. supply rises
D. demand rises
A. quantity supplied rises
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Which of the following statements is true?
A) Trade-offs do not apply when the consumers purchase a product for which there is excess supply, such as with a stock clearance sale. B) Economics is a social science that studies the trade-offs we are forced to make because resources are unlimited. C) Every individual, no matter how rich or poor, is faced with situations that require trade-offs. D) Any time you have to decide which action to take you are experiencing economic equity.
As the quantity of capital increases, the marginal product of capital
A) does not change. B) increases. C) decreases. D) may either increase or decrease.
Empirical research seems to verify that:
A. the rate of inflation seems to vary directly with the amount of central bank independence. B. countries that have high rates of inflation seem to have central banks with low levels of independence. C. there is no relationship between the independence of central banks and rates of inflation. D. countries that have less independent central banks experience lower rates of inflation.
To determine the optimal method of production for a good or service, a perfectly competitive firm needs to know all of the following except
A. the prices charged by its rivals. B. the technologies of production that are available to the firm. C. the prices of inputs. D. the market price of output.