A government-imposed price ceiling set below the market's equilibrium price will create an excess demand for a product. As a result of the excess demand, either the demand curve will tend to shift to the left or the supply curve will shift to the right-or both
a. True
b. False
B
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Two countries, Blue Violet and Sweet Pansy, produce only two goods: teapots and coffeepots. The table above gives their production possibilities. With specialization and trade, Sweet Pansy produces ________ and Blue Violet produces ________
A) 150 coffeepots, 150 teapots B) 150 teapots, 75 coffeepots C) 150 teapots and 150 coffeepots, nothing D) 100 teapots and 25 coffeepots, 100 teapots and 50 coffeepots
Net foreign investment is a measure of net capital outflows, equal to capital outflows minus capital inflows in a given period of accounting
Indicate whether the statement is true or false
Currently, a three-month Treasury bill has a yield of 5% while the yield on a ten-year Treasury bond is 4.7%. What is the risk premium of the typical A-rated ten-year corporate bond with a yield of 5.5%?
A) 0.5% B) 0.8% C) 5.5% D) 1.17%
Howie just bought a new digital camera to replace his old one. His old one works perfectly fine and would sell on Craigslist for $100. The fact that Howie would not pay $100 for it, yet continues to let it sit in his closet unused is explained by:
A. the implicit cost of ownership. B. the explicit cost of ownership. C. the explicit cost of sales. D. ignoring sunk costs.