To affect the market outcome, a price ceiling
A) must be set below the equilibrium price. B) must be set below the legal price.
C) must be set below the price floor. D) must be set below the black market price.
A
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All else equal, a decrease in government borrowing is likely to cause a(n):
A) upward movement along the credit demand curve. B) rightward shift of the credit demand curve. C) leftward shift of the credit demand curve. D) downward movement along the credit demand curve.
A lower nominal money supply is equally demanded, given each interest rate, at a ________ level of income, meaning that the LM curve has shifted to the ________
A) higher, left B) higher, right C) lower, left D) lower, right
An example of a situation in which the social costs are greater than the private costs would be
A) a new restaurant takes business away from an established restaurant. B) hand-held calculators putting slide rule manufacturers out of business. C) when a member of a rock band's ability to hear deteriorates from performing in so many loud concerts. D) a physician who cannot examine patients with a stethoscope in an examination room adjacent to an airport.
The television network newscaster reports that the national inflation rate in the past year was equal to 4 percent. This report is most likely prepared from work done by a(n)
a. microeconomist b. normative economist c. macroeconomist d. econometrician e. social scientist rather than an economist