In a competitive market, the market demand is Qd = 400 - 5P and the market supply is Qs = 10P - 80. A price ceiling of $32 will result in
A. a shortage of 44 units.
B. a surplus of 26 units.
C. a shortage of 80 units.
D. neither a shortage nor a surplus.
Answer: D
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A decrease in the price level in an economy is likely to cause a: a. decrease in the real value of dollar-denominated assets. b. downward shift of the aggregate expenditure line
c. decrease in the equilibrium level of output demanded. d. downward movement along the aggregate demand curve. e. leftward shift of the aggregate demand curve.
Which of the following acts prohibits directors of one company from sitting on the board of a competitor?
a. Sherman Act b. Federal Trade Commission Act c. Robinson-Patman Act d. Clayton Act
A scatter diagram of money growth rates and inflation rates from 1982 to 2010 indicates
a. a clear direct relationship between money growth and inflation. b. a clear indirect relationship between money growth and inflation. c. no clear relationship between money growth rates and inflation. d. that inflation is always and everywhere a monetary phenomenon.
At year-end 2014, the national debt of the United States was approximately
a. 5 percent of GDP. b. 25 percent of GDP. c. 77 percent of GDP. d. 107 percent of GDP.