If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices.
B. lower level of output and prices.
C. higher level of output and prices.
D. lower level of output at higher prices.
Answer: A
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The economist Joseph Schumpeter argued that industrial concentration, in which a relatively small number of firms control the market place, actually ________ the rate of ________.
A. increased; market competitiveness B. decreased; technological advance C. decreased; market competitiveness D. increased; technological advance
A government policy that prevents the price of a good or service from falling below a specified level is called a price floor and usually results in
A. a shortage. B. a surplus. C. a black market. D. fewer producers of the good or service. E. a decrease in demand.
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a. only the Department of Justice b. only the Federal Trade Commission c. only the Antitrust Division d. both the Justice Department and the Federal Trade Commission e. the President