Price ceilings and price floors cause a loss in allocative efficiency
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
________ is the process by which organizations imbue society with their ideology or opinion
A) Indoctrination B) Backward induction C) Anchoring D) Sniping
Consider the market for air travel. A simultaneous increase in the price of fuel and another terrorist attack on United States soil would cause the equilibrium quantity of air travel to go down, but have an uncertain effect on equilibrium price
Indicate whether the statement is true or false
For a consumer not bound by the collateral constraint, a reduction in the price of the collateral leads to
A) nothing. B) an increase in current consumption and a decrease in future consumption. C) a decrease in current consumption and no change in future consumption. D) a decrease in current and future consumption.
Suppose the parents of a child born in the year 2000 had invested $5,000 at a 10% interest rate to be paid out to the child when she turns 21 years old. Approximately how many times will the investment double by the time it is paid out to the child?
a. 2 times b. 3 times c. 4 times d. 8 times