When there is a binding price ceiling
A) there is no equilibrium.
B) the quantity demanded does not equal the quantity supplied.
C) all potential customers are happy because they can buy the good at a lower price.
D) producers move production to another country.
B
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If the production of wheat were subsidized by government,
A) the demand for wheat would increase. B) the supply of wheat would increase. C) both A & B would occur. D) none of the above would occur.
The cost of holding money is best described as
A) the cost of printing money. B) the cost which price decreases impose on money holders. C) the yield which is paid to money holders by the U.S. government. D) the yield that could have been earned had the asset been held in another form.
Another term for the real-balance effect is
A) the substitution effect. B) the wealth effect. C) the indirect effect. D) the interest rate effect.
The law of comparative advantage implies that a nation, individual, or region should trade for those economic goods for which it
What will be an ideal response?