When the government imposes a price ceiling on a good whose price is too high,
a. surpluses are created.
b. supply will increase to meet the demand.
c. rationing is not necessary.
d. quantity demanded of the good will fall.
e. chronic excess demand occurs.
e
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The income paid to labor is called
A) rent. B) profit. C) interest. D) human capital. E) wages.
In the schematic theory of economic policy, consumer optimism is considered
A) a policy instrument. B) an exogenous nonpolicy variable. C) a structural relation. D) a target variable. E) an irrelevant side effect.
Explain the main difference between the pay-as-you-go system employed by Social Security and a private pension plan
What will be an ideal response?
When a person smokes a cigarette in his car and throws the butt out of the window, this is a(n)
A) marginal cost. B) external cost. C) average total cost. D) public cost.