A price ceiling will be binding only if it is set
a. equal to the equilibrium price.
b. above the equilibrium price.
c. below the equilibrium price.
d. either above or below the equilibrium price.
c
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Anna's Antiques expects to get three bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If three bidders show up at the auction and all of them are low-value bidders, what would the winning bid be?
a. Just above $100 b. $100 c. Just above $70 d. $70
The American Recovery and Reinvestment Act, a $787 billion package of tax benefits and spending programs aimed at reducing aggregate demand in the U.S economy
Indicate whether the statement is true or false
If the executives of the U.S. silicon-chip industry lobby Congress for protection from imports on the grounds that the military should have an unrestricted domestic supply of silicon chips, they are using the:
A) environmental standards argument. B) infant industry argument. C) cheap foreign labor argument. D) national security argument.
Which of the following statements accurately describes the growth of this economy?
a. The total spending in the economy grew faster than total production, with a price level change from PL1 to PL2.
b. Long-run economic growth is illustrated by the shift from LRAS2 to LRAS1.
c. The aggregate demand curve shifted from AD2 to AD1 due to increased spending by consumers, firms, and government.
d. The LRAS curve shifted further to the right than did the AD curve.