According to the graph above, which of the following will occur if a legal price ceiling is imposed at price X?

A. Shortages will occur
B. Surpluses will occur
C. Demand will increase
D. Q1 will be purchased
E. Supply will decrease


A. Shortages will occur

Economics

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Government stabilization policy would be unnecessary if the economy automatically gravitated toward

A. full inflation. B. full employment. C. full recession. D. an inflationary gap.

Economics

The Sherman Act of 1890 was passed to prohibit

A) combinations, trusts, or conspiracies to restrict interstate or international trade. B) monopolization or attempts to monopolize interstate or international trade. C) both of the above. D) neither of the above.

Economics

The currency deposit ratio, c, is 0.10. The reserve requirement, rr, is 0.07. The excess reserve ratio, e, is 0.10. What is the size of the money multiplier?

A) 4.70 B) 4.07 C) 4.75 D) 4.00

Economics

Once the state environmental protection agency devises its new policy to protect the environment, firms decide whether to remain in the state or move their operations to a neighboring state. In the language of game theory, this is an example of:

A) a cooperative game. B) a sequential game. C) a threat. D) the Prisoner's dilemma.

Economics