When the price ceiling on eggs is lifted, there is a shortage of eggs in the market
a. True
b. False
Indicate whether the statement is true or false
False
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The quantity of money demanded is the
A) income and volume of profits that people and businesses would like to receive. B) sum of checkable and savings deposits at banks. C) amount that people and businesses choose to hold. D) average daily volume of bank account withdrawals. E) fraction of cash holdings in an average investment portfolio.
The Federal Constitution, like the laws under English rule, permitted the U.S. government to
(a) impose taxes to pay for government services and national defense. (b) regulate commerce with other countries. (c) create money and regulate its value. (d) do all of the above.
Which of the following terms is not associated with a market having a firm whose behavior has been judged to be characteristic of the dominant firm model?
a. godfather b. price leadership c. kinked demand curve d. profit maximization e. oligopoly
Situation 4-1 During the winter of 1973-74, a general system of wage and price controls (including a price ceiling on gasoline) was in force in the United States. At the beginning of 1974, some oil-producing countries imposed an oil embargo (a legal prohibition on commerce) on the West. In the spring of 1974, price controls were abolished. Refer to Situation 4-1. An economist would have most
likely predicted that once price controls were abolished in the spring of 1974, A) the price of gasoline would decline sharply. B) the surplus of gasoline would go away. C) the shortage of gasoline would go away. D) the demand for gasoline would decrease. E) both c and d