If the government required the actual market price to be fixed at $6 per unit in,
Shifts of Supply and Demand
A. The market would reach equilibrium.
B. A nonbinding or noneffective price ceiling would result.
C. A binding or effective price floor would result.
D. A binding or effective price ceiling would result.
Answer: D
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The figure above shows the market for college education in the United States. If the government does not intervene in this market, the deadweight loss equals ________ per year
A) $28 billion B) $14 billion C) $280 billion D) $224 billion E) $7 billion
The idea that because of scarcity, producing more of one good or service means producing less of another good or service refers to the economic concept of
A) trade-off. B) equity. C) efficiency. D) optimization.
For a resource to be able to generate sustained competitive advantage over rivals, it must be
a. Valuable b. Rare c. Difficult to imitate or substitute away from d. All of the above
In comparing the views of economists on stabilization policy in the 1960s with the current views of economists on stabilization policy, one can say
A) few economists in the 1960s favored stabilization policy, while most economists currently favor stabilization policy. B) economists' views on stabilization policy have changed very little since the 1960s. C) fewer economists currently believe it is possible to use stabilization policy to fine-tune the economy than in the 1960s. D) almost no economists in the currently believe stabilization policy should be used.