A price ceiling set below the equilibrium price causes quantity demanded to exceed quantity supplied
a. True
b. False
Indicate whether the statement is true or false
True
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In the above figure, the firm is a monopolistically competitive firm. In the long run, its economic profit will be
A) zero. B) between zero and $50 per day. C) greater than $50 per day. D) some amount that cannot be determined without more information.
Included among the Fed's primary goals to promote a well-functioning economy are
A) high employment, low inflation, and a high foreign-exchange value of the dollar. B) price stability, economic growth, and a high reserve ratio. C) low government budget deficits, interest rate stability, and no inflation. D) a low rate of unemployment, a low and stable inflation rate, and financial market stability.
Financial markets are:
A. in many ways the purest expression of the market mechanism. B. a powerful tool for the efficient allocation of scarce resources. C. a global marketplace where sophisticated investors make billion-dollar decisions. D. All of these statements are true.
The economy's self-correcting mechanism
a. tends to push unemployment toward a specific point called the natural rate of unemployment. b. works better at correcting inflationary gaps than recessionary gaps. c. cannot work if the Phillips curve is vertical. d. ensures that the economy will not have to endure a long period of high unemployment.