If the government imposes a maximum price that is above the equilibrium price,
A. quantity demanded will be less than quantity supplied.
B. demand will be greater than supply.
C. this maximum price will have no economic impact.
D. the available supply will have to be rationed with a non-price rationing mechanism.
C. this maximum price will have no economic impact.
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The table below shows data for Japan
2008 2009 M1 growth rate 0.7 0.9 Inflation rate 0.4 -0.3 Assuming the rate of velocity change is constant, real GDP A) grew by 0.3 percent in 2008. B) grew by -1.2 percent in 2009. C) grew by 1.1 percent in 2008. D) grew by 0.9 percent in 2009.
The average total cost of production
A) equals total cost of production multiplied by the level of output. B) is the extra cost required to produce one more unit. C) equals the explicit cost of production. D) equals total cost of production divided by the level of output.
Which of the following is a criticism of the neoclassical counter-revolution school's approach?
a. markets are not competitive in developing countries. b. externalities are common in developing countries. c. inequality may worsen when interventions are removed in developing countries. d. all of the above.
Which of the following is NOT part of M1 but is included in M2?
A) currency B) small-denomination certificates of deposits C) traveler's checks D) cash