A price ceiling that is set above the equilibrium price:
A. will have no effect on the market.
B. will lead to excess supply in the market.
C. will lead to excess demand in the market.
D. will lead to a black market.
Answer: A
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With respect to the stock market, the acronym IPO stands for
A. investment proposal option. B. immediate public offering. C. internal public offering D. initial public offering.
Because labor unions contribute to keeping real wages ________ their equilibrium levels, higher unionization rates will tend to contribute to ________ unemployment rates
A) above; higher B) above; lower C) below; higher D) below; lower
Suppose that the market for steel is shown in the above figure. Is social welfare greater under monopoly or under competition?
What will be an ideal response?
According to supply-side economists, lower marginal tax rates will not necessarily lead to lower tax revenues because
A) the crowding out effect does not apply to taxes. B) lower tax rates have no effect on the opportunity cost of labor. C) the aggregate supply curve will shift inward to the left if the tax rates are lowered. D) the lower marginal tax rates will be applied to a growing tax base due to economic growth.