If an effective price ceiling is placed on hamburgers, then:
A. the quantity demanded will exceed the quantity supplied.
B. consumers may want government to ration hamburgers.
C. a black market for hamburgers may evolve.
D. All of these are likely outcomes.
Answer: D
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Shoe leather costs are
A) the costs in time and effort incurred by people and firms who are trying to minimize their holdings of cash because of inflation. B) the costs of changing prices, such as printing and mailing catalogues. C) the costs of the redistribution of wealth between lenders and borrowers. D) the costs associated with the confusion of prices as signals.
Which of the following is an argument for globalization?
a. Poor countries compete for multinational firms by allowing lax environmental standards. b. Multinational firms tend to pay lower wages than local firms. c. The benefits of globalization to all consumers greatly outweigh the loss of jobs to international competition. d. Removal of restrictions against agricultural products would cause workers in rich countries to lose their jobs. e. The increased integration of the world's economies has been associated with lax environmental and labor standards in most countries.
The trade-off between current consumption and the production of capital goods is also a trade-off between
A. current consumption and future consumption. B. the future cost for capital goods and future cost of consumption goods. C. having fewer needs and more wants in the future. D. satisfying the needs of the poor and the wants of the wealthy.
Equilibrium price is
A. $10.
B. $8.
C. $6.
D. $4.