What are price controls? How do they affect a market?
What will be an ideal response?
Price controls are non-market price impositions. When price controls hold, the incentives that equilibrium prices provide to buyers and sellers are eliminated. If a price control is imposed above the equilibrium price of a good, the quantity supplied of the good exceeds the quantity demanded of the good. This represents a surplus in the market. If a price control is imposed below the equilibrium price of a good, the quantity demanded of the good exceeds the quantity supplied of the good. This results in a shortage in the market.
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Real GDP measures the ________ of production; nominal GDP measures the ________ of production.
A. physical volume; current dollar value B. current dollar value; market value C. current dollar value; current dollar value D. current dollar value; physical volume
A resilient market is one in which
A) wide price swings occur when orders decline. B) volume picks up quickly when prices change. C) bid-asked spreads are large. D) volume is large.
Inland passage times were reduced primarily through
a. increasing the speeds of the boats themselves. b. shorter layover times. c. the government activity to clear the rivers of natural obstructions. d. learning to operate the boats at night.
The National Bank Act
a. stemmed the credit expansion that banks generated by holding each other's deposits b. avoided wholesale shifts of deposits between city and country banks c. was instrumental in averting the 1907 Knickerbocker disaster d. helped to avoid financial panics and recessions e. tightened the money supply, but was by no means the banking industry's panacea